My conveyancer has identified a a legal deficiency with the lease for the apartment we are buying in Storrington. The seller’s lawyers have suggested defective title insurance as a solution. We are content with insurance and will pay for it. Our lawyer has advised that he must ensure that the lender is happy with this solution. Who is the client here, us or the mortgage company ?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the bank are the client. Your 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 lender 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 solicitor will have no choice but to discontinue acting for you.
Why is leasehold purchase conveyancing in Storrington is more expensive?
In short, leasehold conveyancing in Storrington and elsewhere usually requires additional work compared to freehold conveyancing. This includes reviewing the lease, liaising with the landlord concerning serving appropriate notices, obtaining current service charge and management information, obtaining the landlord’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – regardless of the fact the lease has passed through many different property solicitors hands since it was first granted.
It has been 3 months since my purchase conveyancing in Storrington took place. I have checked the Land Registry site which shows that I paid £175,000 when infact I paid £180,000. Why the discrepancy?
The price paid figure is taken from the application to register the purchase. It is the figure included in the Transfer (the legal deed which transfers the premises from one person to the other) and referred to as the 'consideration' or purchase price. You can report an error in the price paid figure using the LR online form. In most cases errors result from typos so at first glance the figure. Do report it so they can double check and advise.
I've recently found out that there is a flying freehold issue on a house I put an offer in last month in what should have been a quick, no chain conveyancing. Storrington is the location of the property. Can you shed any light on this issue?
Flying freeholds in Storrington are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Storrington you must be sure that your lawyer goes through the deeds diligently. Your bank may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Storrington may determine that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold residence.
What makes a Storrington lease unacceptable for security purposes?
There is nothing unique about leasehold conveyancing in Storrington. Most leases are unique and drafting errors can sometimes mean that certain sections are missing. The following missing provisions could result in a defective lease:
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A duty to insure the building
You could have difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Yorkshire Building Society, Skipton Building Society, and Platform Home Loans Ltd all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, obliging the purchaser to pull out.
I acquired a 1st floor flat in Storrington, conveyancing having been completed 7 years ago. Can you let me have an estimated range of the fair premium for a lease extension? Corresponding flats in Storrington with over 90 years remaining are worth £165,000. The ground rent is £50 levied per year. The lease runs out on 21st October 2102
With only 77 years unexpired we estimate the price of your lease extension to range between £7,600 and £8,800 plus costs.
The suggested premium range above a general guide to costs for extending a lease, but we are not able to advice on the actual costs without more comprehensive due diligence. Do not use the figures in tribunal or court proceedings. There may be additional issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first getting professional advice.
We have an offer in principle from Coventry Building Society who said we could borrow up to £300k. When do we need to instruct a practitioner for conveyancing? Storrington is where we plan to move to.
You can appoint a conveyancing practitioner now and ask them to create a file for you. This will kickstart: 1) the selling agent to send out the Sales Memo to the relevant parties 2) the seller’s property lawyer to submit the draft contract. That being said, do not instruct your conveyancing practitioner to start searches until you have your valuation report via Coventry Building Society and you are happy to move forward.