My solicitor has discovered a defect with the lease for the apartment we are buying in Sittingbourne. The seller’s lawyers have offered defective title insurance as a workaround. We are content with insurance and will cover the costs. Our solicitor says that he must be satisfied that the lender is content with this solution. Who is the client here, us or the bank?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the mortgage company are the client. Your property lawyer must comply with the UK Finance Lenders’ Handbook provisions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your property lawyer will have no choice but to discontinue acting for you.
Finally the sale completed on my house in Sittingbourne last January yet the purchaser is texting daily to say their conveyancer is waiting to hear from mine. What are the post completion sale legalities following completion?
Following your sale your lawyer should forward the transfer deeds and all supplemental paperwork to the buyer’s solicitors. Depending on the transaction, your conveyancer should also evidence that the home loan has been discharged to the purchasers lawyers. There are no post completion procedures just for conveyancing in Sittingbourne.
I am about to put a bid on a leasehold property in Sittingbourne. The estate agents advise that it is the norm for flats in Sittingbourne to have less than 75 years left on the lease. I am getting a mortgage with Bank of Ireland. Is this going to be acceptable if the lease has Seventy One years unexpired.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are getting a mortgage then your lender may insist that the lease be extended before competition. Bank of Ireland have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 20/11/2024 the requirements read as follows :
About to purchase a new build apartment in Sittingbourne. Conveyancing is a frightening process at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build legal work.
Here is a sample of a selection of leasehold new build questions that you should expect your new-build leasehold conveyancing in Sittingbourne
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There must be mutual enforceability of lessee’s covenants. The Vendor must covenant to keep unoccupied units in good repair until long leases are granted therefore. Investor purchasers must be able to freely grant unsecured tenancies at market rents without requiring any consents. Please supply evidence that the form of Lease proposed has been approved by the Land Registry. Where there is an Undertaking being granted there is the risk of forfeiture of the Headlease subject to relief if one or more of the Underlessees are willing to accept the original Head Lessee’s obligations as otherwise relief will be denied to the Underlessees. The only alternatives are the Head Lessor agreeing not to forfeit the Headlease or the Head Lessee guaranteeing to the Underlessees that it will not be in breach of the Headlease.
Due to the encouragement of my in-laws I had a survey completed on a property in Sittingbourne ahead of retaining lawyers. I have been advised that there is a flying freehold aspect to the property. Our surveyor advised that some mortgage companies may not issue a mortgage on this type of premises.
It varies from the lender to lender. HSBC has different requirements for example to Birmingham Midshires. Should you wish to telephone us we can investigate further via the appropriate lender. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Sittingbourne. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Sittingbourne to see if the conveyancing costs will increase in light of this.
We own a leasehold flat in Sittingbourne. Conveyancing was finished in 2011. I have read on numerous consumer forums that I mustn’t let the the remaining lease term to fall too low. Is this right?
Sittingbourne leasehold properties are for a prescribed term - often ninety nine years when they started. However a significant flats in Sittingbourne were built or converted 25 or more years ago and so such leases now have under eighty years unexpired. That may seem like plenty of time however Banks, Building Societies and other mortgage companies generally require leases to have a minimum of 75 years left to be mortgageable. This means that when you come to sell the property you will need a lease extension if you are nearing eighty years. To maximise your property value you should be considering whether or not to extend your lease well in advance of selling the property. Please note that there are strong financial reasons to taking action before the lease reaches even eighty years as when the lease is below 80 years the premium you have to pay to extend starts to escalate.