I am nearing exchange of contracts for my flat in Shanklin and the EA has just telephoned to say that the buyers are changing their solicitor. I am told that this is due to the fact that the bank will only work with property lawyers on their conveyancing panel. Why would a big named mortgage company only engage with specific solicitors rather the firm that they want to select to handle their conveyancing in Shanklin ?
Lenders have always had an approved set of law firms they are willing to work with, but in the last few years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Mortgage companies point to the increase in fraud by way of justification for the reduction – criteria have been narrowed as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Some do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your purchasers are unlikely to have any sway in the decision.
Can you explain why leasehold purchase conveyancing in Shanklin costs more?
Shanklin 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.
What does a local search inform me regarding the property we're buying in Shanklin?
Shanklin conveyancing often commences with the ordering local authority searches directly from your local Authority or through a personal search company such as Searches UK The local search is essential in every Shanklin conveyancing purchase; that is if you wish to avoid any unpleasant once you have moved into your property. The search should reveal data on, amongst other things, details on planning applications applicable to the premises (whether granted or refused), building control history, any enforcement action, restrictions on permitted development, nearby road schemes, contaminated land and radon gas; in all a total of 13 topic sections.
Due to the guidance of my in-laws I had a survey completed on a house in Shanklin before appointing lawyers. I have been told that there is a flying freehold aspect to the property. The surveyor advised that some lenders may refuse to give a mortgage on a flying freehold house.
It depends who your proposed lender is. Bank of Scotland has different instructions from Nationwide. Should you wish to telephone us we can check with the appropriate bank. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Shanklin. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Shanklin to see if the conveyancing will be more expensive.
How do I locate a Shanklin law firm on the Santander conveyancing panel? I am a keen cyclist and am willing to travel upto 10miles to meet the solicitor.
You can use the tool on this website. Please pick a mortgage company and your location and you will see a number of Shanklin conveyancing lawyers located nearest you. We have detailed some Shanklin conveyancing firms towards the end of this page and you can call them to see if they are on the Santander member panel
I am looking at a couple of apartments in Shanklin both have approximately 50 years left on the lease term. Will this present a problem?
There are no two ways about it. A leasehold flat in Shanklin is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the salability of the property. The majority of buyers and lenders, leases with less than 75 years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property 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 premises 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 Shanklin conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending 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 any new 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 Shanklin - Sample of Queries before buying
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The prefered form of lease structure is a share of the freehold. In this arrangement the lessees enjoy being in charge if their destiny and notwithstanding that a managing agent is often employed where the building is bigger than a house conversion, the managing agent acts for the leaseholders themselves. Most Shanklin leasehold properties will have a service bill for maintenance of the block levied by the freeholder. If you buy the apartment you will have to meet this amount, normally quarterly throughout the year. This can be anything from a few hundred pounds to thousands of pounds for buildings with lifts and large common areas. There will also be a rentcharge for you to pay yearly, ordinarily this is not a significant amount, say around £50-£100 but you should to enquire as sometimes it can be surprisingly expensive. Please note if it is no more than eighty years it will impact the marketability of the flat. Check with your lender that they are happy with the length of the lease. Leases with less than 80 years remaining means that you will most likely have to extend the lease sooner rather than later and you need to have some idea of what this would cost. For most Shanklinlease extensions you would be be obliged to have owned the property for 24 months before you are eligible to extend the lease.