My partner and I are hoping to acquire a flat in South Shields and have appointed a South Shields conveyancing firm. Within the last couple of days our solicitor has forwarded the sale agreement to be signed with a detailed report with the expectation that exchange is imminent. Lloyds TSB Bank have this morning contacted us to advise us that there is now an issue as our South Shields lawyer is not on their conveyancing panel. Is this a problem?
If you are buying a property with the assistance of a mortgage it is usual for the purchasers' solicitors to also act for the mortgage company. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Quality Scheme. Your property lawyer should contact your lender and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own solicitors to act. You are not legally obliged to appoint a law firm on the lender’s conveyancing panel as you are at liberty to use your preferred South Shields lawyers, in which case it will likely add costs, and it may delay matters as you have another set of people involved.
Our lawyer has identified a defect with the lease for the apartment we are buying in South Shields. The seller’s lawyers have suggested title insurance as a workaround. We are content with insurance and will pay for it. Our solicitor says that he must be satisfied that the bank is happy with this solution. Who is the client here, us or the bank?
Regardless of the fact that you have a mortgage offer from the mortgage company does not mean to say that the property will meet their requirements 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 lender are the client. The appropriate lender provisions have to be complied with.
As I am unsure how the conveyancing process works what is the most important advice you can impart concerning purchase conveyancing in South Shields?
You may not hear this from too many lawyers but conveyancing in South Shields and elsewhere in England and Wales is an adversarial experience. Put another way, when it comes to conveyancing there is an abundance of opportunity for conflict between you and others involved in the transaction. For example, the vendor, property agent and on occasion your bank. Selecting a lawyer for your conveyancing in South Shields is a critical decision as your conveyancer is your adviser, and is the SOLE person in the transaction whose responsibility is to look after your best interests and to protect you.
Sometimes a third party with a vested interest may try and sway you that you should follow their advice. As an example, the property agent may claim to be assisting by claiming that your lawyer is dragging his heels. Or your mortgage broker may try to convince you to do take action that is against your solicitors advice. You should always trust your lawyer above all other parties in the home moving process.
I have been told that property searches are a common reason for stalling in South Shields conveyancing transactions. Is that correct?
The Council of Property Search Organisations (CoPSO) has noted the findings of a review by MoveWithUs that conveyancing searches do not figure within the common causes of delays in the conveyancing process. Local searches are not likely to be the root cause of slowing down conveyancing in South Shields.
I am looking for a flat up to £245,000 and identified one close by in South Shields I like with open areas and railway links in the vicinity, however it's only got 61 remaining years left on the lease. There is not much else in South Shields for this price, so just wondered if I would be making a grave error purchasing a short lease?
Should you need a home loan the shortness of the lease will be a potential deal breaker. Reduce the offer by the anticipated lease extension will cost if not already taken into account. If the current owner has owned the premises for at least 2 years you may ask them to commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the existing lease with a zero ground rent applied. You should speak to your conveyancing lawyer regarding this matter.
All being well we will complete the sale of our £325,000 apartment in South Shields next week. The management company has quoted £372 for Landlord’s certificate, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in South Shields?
For the majority of leasehold sales in South Shields conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :
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Addressing conveyancing due diligence enquiries
Where consent is required before sale in South Shields
Copies of the building insurance and schedule
Deeds of covenant upon sale
Registering of the assignment of the change of lessee after a sale
I invested in buying a 2 bed flat in South Shields, conveyancing was carried out July 2006. Can you let me have an estimated range of the fair premium for a lease extension? Equivalent properties in South Shields with a long lease are worth £180,000. The ground rent is £65 levied per year. The lease ceases on 21st October 2085
With 59 years unexpired we estimate the price of your lease extension to range between £20,900 and £24,200 plus legals.
The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. You should not use the figures in a Notice of Claim or as an informal offer. There are no doubt other issues that need to be considered and clearly you should be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information before getting professional advice.