My conveyancer has discovered a a problem with the lease for the flat we are buying in Raglan. The other side have put forward title insurance as a workaround. We are content with insurance and will cover the costs. Our lawyer says that he must check that the bank is happy with this solution. Who is the client here, us or the bank?
Notwithstanding that you have a mortgage offer from the mortgage company does not mean to say that the property will meet their conditions for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook specifications. You and the mortgage company are the client. These conveyancing instructions have to be complied with.
Finally the sale completed on my house in Raglan last October but the buyer keeps texting every few hours to moan that his solicitor needs to hear from mylawyer. What should my lawyer have done following completion?
After completion of your disposal your solicitor should send the transfer deeds and all additional paperwork to the buyer’s lawyers. Depending on the transaction, your lawyer should also confirm that the mortgage has been paid off to the buyers lawyers. There is unlikely to be post completion tasks unique to conveyancing in Raglan.
Please explain the implications if my lawyer’s firm is removed from the Leeds Building Society Conveyancing panel ahead of completing my conveyancing in Raglan?
First, this is a very rare occurrence. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit for a fee.
How does conveyancing in Raglan differ for new build properties?
Most buyers of new build residence in Raglan approach us having been asked by the developer to sign contracts and commit to the purchase even before the residence is finished. This is because new home sellers in Raglan typically buy the land, 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 conveyancing solicitors 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 used to new build conveyancing in Raglan or who has acted in the same development.
Over the last few months I have been searching for a ground for flat up to £305k and identified one near me in Raglan I like with amenity areas and station nearby, the downside is that it only has 52 remaining years left on the lease. There is not much else in Raglan suitable, so just wondered if I would be making a mistake buying a lease with such few years left?
Should you need a mortgage the shortness of the lease will be problematic. Reduce the price by the anticipated lease extension will cost if not already taken into account. If the existing proprietor has owned the premises for a minimum of 2 years you may ask them to start the process of the extension and then assign it to you. You can add 90 years to the current lease and have £0 ground rent by law. You should speak to your conveyancing lawyer about this matter.
I am tempted by the attractive purchase price for a couple of maisonettes in Raglan which have about fifty years left on the lease term. Should I regard a short lease as a deal breaker?
There is no doubt about it. A leasehold apartment in Raglan is a wasting asset as a result of the shortening lease. The nearer the lease gets to zero years unexpired, the more it reduces the value of the premises. The majority of purchasers and mortgage companies, leases with under 75 years become less and less attractive. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a property with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Raglan conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Leasehold Conveyancing in Raglan - Sample of Questions you should ask before buying
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This question is helpful as a) areas can result in problems for the block as the communal areas may begin to deteriorate where services are not paid for b) if the tenants have an issue with the managing agents you will wish to know about it Best to be warned if fixing the lift or some other major work is anticipated to be shared amongst the leasehold owners and will dramatically impact the level of the maintenance charges or result in a specific payment. Who is in charge of the block?