My husband and I are purchasing a brand new flat in Northumberland and my conveyancer is telling me that she has to the mortgage company to reveal incentives from the developer. The Estate Agents are hassling me to sign contracts and I would rather not delay deal. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your lawyer. A precondition to being on a bank 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.
Why is leasehold purchase conveyancing in Northumberland is more expensive?
Northumberland leasehold properties involve far more paperwork than a freehold purchase, and therefore takes more time to examine and advise upon.Conveyancing will involve the lease having to be checked which is usually a lengthy document, queries raised to ensure that the covenants and conditions have been observed. If it is a flat there will be a management company in existence and the accounts of this will need to be checked and enquiries raised to ensure it is operating efficiently and that all monies due have been paid by the Seller to the company and if not ensuring that money is paid up to date or the appropriate undertakings obtained.
Various online forums that I have come across warn that are a common cause of hinderance in Northumberland house deals. Is there any truth in this?
The Council of Property Search Organisations (CoPSO) published findings of a review by MoveWithUs that conveyancing searches do not figure amongst the common causes of hindrances during the legal transfer of property. Local searches are not likely to be the root cause of holding up conveyancing in Northumberland.
Over the last few months I have been searching for a ground for flat up to £245,000 and identified one round the corner in Northumberland I like with amenity areas and station in the vicinity, the downside is that it only has 52 years on the lease. There is not much else in Northumberland suitable, so just wondered if I would be making a grave error acquiring a short lease?
Should you need a mortgage the shortness of the lease will likely be an issue. Discount the price by the amount the lease extension will cost if it has not already been discounted. If the existing proprietor has owned the property for at least twenty four months you may request that they start the process of the extension and then assign it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should speak to your conveyancing lawyer about this.
Is it best to choose a Northumberland conveyancing solicitor in close proximity to the house I am buying? I have an old university friend who can execute the legal formalities but they are based approximately 350miles drive away.
The primary upside of using a high street Northumberland conveyancing practice is that you can drop in to execute documents, present your identification documents and pester them if necessary. Having local Northumberland know how is a benefit. However nothing is more important than finding someone that will do a good and efficient job. If other friends have instructed your friend and on the whole were content that should trump using an unfamiliar Northumberland conveyancing solicitor solely due to them being Northumberland based.
What advice can you give us when it comes to finding a Northumberland conveyancing firm to deal with our lease extension?
When appointing a property lawyer for lease extension works (regardless if they are a Northumberland conveyancing firm) it is imperative that they be familiar with the legislation and specialises in this area of conveyancing. We suggest that you make enquires with two or three firms including non Northumberland conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. The following questions might be of use:
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How many lease extensions has the firm conducted in Northumberland in the last year? What are the costs for lease extension work?
Northumberland Conveyancing for Leasehold Flats - Sample of Questions you should consider Prior to Purchasing
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For most Northumberland leaseholds the cost for major works are not incorporated into the maintenance charges, albeit that some managing agents in Northumberland require tenants to pay into a sinking fund and this is used to offset against larger works. You should be aware that where the lease has less than eighty years it will impact the marketability of the property. Check with your mortgage company that they are willing to go ahead with the loan given the lease term. A short lease means that you will probably have to extend the lease at some point and you need to have some idea of how much this will be. For most Northumberlandlease extensions you would be required to have been the owner of the residence for a couple of years before you are entitled to extend the lease. Who are the managing agents?