My partner and I are nearing an exchange on a flat in Penryn and my mum and dad have sent the ten percent deposit to my property lawyer. I am now advised that as the deposit has been sent from someone other than me my solicitor needs to make a notification to my mortgage company. Apparently, in also acting for the lender he must inform them that the balance of the purchase price is not just from me. I advised the bank about my parents' contribution when I applied for the mortgage, so is it really necessary for this now to delay the deal?
The solicitor is legally required to check with the bank to ensure that they understand that the balance of the purchase price is not from your own resources. Your solicitor can only report this to your mortgage company if you agree, failing which, your lawyer must cease to continue acting.
I own a freehold house in Penryn yet pay rent, why is this and what is this?
It’s unusual for properties in Penryn and has limited impact for conveyancing in Penryn but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back many centuries, but the Rent Charge Act 1977 barred the generation of new rentcharges from 1977 onwards.
Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence after 2037 will be dispensed with completely.
My wife and I purchased a renovated Edwardian property in Penryn. Conveyancing practitioner acted for me and Aldermore. I did a free Land Registry search last week and I saw a couple of entries: one for freehold, the second leasehold under the exact same property. Is it worth asking Aldermore to clarify?
You need to assess the Freehold register you have again and check the Charges Register as there may be mention of a lease. The best way to be sure that you are also the registered owner of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Penryn and other areas of the country and poses no real issues for owners other than when they mortgage they have to account for both freehold and leasehold interests when dealing with buyers. You can also check the position with the conveyancing lawyer who conducted the conveyancing.
How does conveyancing in Penryn differ for newly converted properties?
Most buyers of new build or newly converted property in Penryn contact us having been asked by the developer to sign contracts and commit to the purchase even before the property is constructed. This is because house builders in Penryn typically acquire 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 conveyancers 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 Penryn or who has acted in the same development.
Due to the advice of my in-laws I had a survey completed on a house in Penryn before retaining lawyers. I have been told that there is a flying freehold overhang to the property. My surveyor has said that some lenders tend refuse to issue a loan on such a house.
It depends who your proposed lender is. Bank of Scotland has different instructions from Halifax. Should you wish to call us we can look into this further via the relevant bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Penryn. Conveyancing will be smoother if you use a solicitor in Penryn especially if they regularly deal with such properties in Penryn.
I am employed by a busy estate agency in Penryn where we have witnessed a few leasehold sales jeopardised due to leases having less than 80 years remaining. I have received contradictory information from local Penryn conveyancing firms. Can you clarify whether the owner of a flat can commence the lease extension process for the purchaser on completion of the sale?
As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the sale.
An alternative approach is to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the purchaser.
Penryn Conveyancing for Leasehold Flats - A selection of Questions you should ask Prior to Purchasing
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The best form of lease structure is a share of the freehold. In this arrangement the lessees benefit from being in charge if their destiny and notwithstanding that a managing agent is frequently retained where the building is larger than a house conversion, the managing agent acts for the leaseholders themselves. How much is the annual maintenance fee and ground rent?