We are purchasing a brand new apartment in Northamptonshire and my solicitor is advising me that she is duty bound to the mortgage company to reveal incentives from the builder. I am on a tight deadline to exchange contracts and my preference is not to prolong deal. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your conveyancer. A precondition to being on a mortgage company panel is to comply with the UK Finance Lenders’ Handbook provisions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
How does conveyancing in Northamptonshire differ for new build properties?
Most buyers of new build residence in Northamptonshire come to us having been asked by the housebuilder to exchange contracts and commit to the purchase even before the residence is completed. This is because builders in Northamptonshire tend to purchase the real estate, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct property lawyers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are accustomed to new build conveyancing in Northamptonshire or who has acted in the same development.
I was advised by numerous selling agents in Northamptonshire to get a quote from a conveyancer on your site. Is there a financial inducement for Estate Agents to market your lawyers rather than another?
We refuse to offer any referral fee for pointing buyers and sellers our way. We found it would be just too difficult a fee because home movers will think, ‘How come the agent getting a kickback? Why am I not getting any benefit too?’ We would prefer to grow our business on genuine recommendations.
My husband and I are FTB’s - had an offer accepted, yet the agent advised that the owners will only move forward if we instruct their chosen solicitors as they are insisting on a ‘quick sale’. Our preferred option is to instruct a local solicitor used to conveyancing in Northamptonshire
It is unlikely the owners are behind this. Should the owner want ‘a quick sale', alienating a genuine buyer is counter productive. Speak to the vendors direct and explain that (a)you are keen to buy (b)you are ready to progress, with finances arranged © you are unencumbered (d) you intend to proceed fast (e)however you intend to instruct your preferred Northamptonshire conveyancing firm - not the ones that will give the negotiator at the agency a commission or achieve conveyancing thresholds pre-set by head office.
I am attracted to a couple of apartments in Northamptonshire both have about 50 years unexpired on the leases. Should I regard a short lease as a deal breaker?
There are plenty of short leases in Northamptonshire. The lease is a right to use the premises for a prescribed time frame. As a lease gets shorter the marketability of the lease reduces and results in it becoming more expensive to extend the lease. This is why it is generally wise to increase the term of the lease. It is often difficult to sell a property with a short lease because mortgage companies may be reluctant to lend money on properties of this type. Lease extension can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this field.
Northamptonshire Leasehold Conveyancing - Sample of Queries Prior to buying
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What restrictions are contained in the Northamptonshire Lease? What is the length of the lease? Please note that where the lease has no more than 80 years it will impact the marketability of the property. It is worth checking with your mortgage company that they are happy with remaining years on the lease. A short lease means that you will almost definitely need a lease extension sooner rather than later and it is worth discovering what this would cost. For most Northamptonshirelease extensions you will need to own the premises for two years before you are legally able to extend the lease.
We are soon to complete on the purchase a house in Northamptonshire but as a consequence of wreckage from the recent storms I have agreed reparation from the seller of £3k taking the form of a reduction in the price. This was going to be dealt with as part of the conveyancing process yet my mortgage company will not agree to this. Why were they involved?
Any property lawyer listed on the bank conveyancing panel is duty bound to advise the mortgage company of any amendments to the purchase price. If you did not allow your conveyancer to report the reduction to your lender then they would have no choice but to discontinue acting for you and the bank.