My husband and I are looking to acquire a flat in Street and are in fact using a Street conveyancing firm. Within the last couple of days our property lawyer has forwarded the sale agreement to be signed with a detailed report with the expectation that exchange is imminent. Barclays Direct have this morning contacted us to inform me that they have now hit a problem as our Street conveyancer is not on their approved list of lawyers. What do we do from here?
When purchasing a property with mortgage finance it is conventional for the purchasers' lawyers to also act for the purchaser's lender. 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 mortgage company 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 don't have to instruct a firm on the lender’s conveyancing panel and you may continue to use your own Street solicitors, in which case your legal fees may increase, and it will likely delay the transaction as you have another set of people involved.
Our solicitor has identified a defect with the lease for the apartment we are buying in Street. The other side have suggested title insurance as a solution. We are content with insurance and will pay for it. Our conveyancing practitioner has advised that he must check that the mortgage company is happy with this solution. Are we the client or is 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 specifications 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. These conveyancing instructions have to be complied with.
Various web forums that I have come across warn that are the number one cause of obstruction in Street house deals. Is that correct?
The Council of Property Search Organisations (CoPSO) has noted the findings of a review by MoveWithUs that conveyancing searches do not feature amongst the common causes of hindrances in the conveyancing process. Searches are not likely to be the root cause of holding up conveyancing in Street.
How does conveyancing in Street differ for newly converted properties?
Most buyers of new build or newly converted property in Street approach us having been asked by the developer to sign contracts and commit to the purchase even before the residence is completed. This is because builders in Street 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 conveyancers 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 Street or who has acted in the same development.
I am using a search engine for the term cheap conveyancing in Street it shows results of many conveyancersin the vicinity. With so much choice what is the best way to find the suitable solicitor for my move?
The ideal way of finding a suitable conveyancer is via personal testimonial, so ask colleagues and relatives who have purchased a property in Street or a local estate agent or financial adviser. Fees for conveyancing in Street vary, so it's advisable to obtain at least three costs illustrations from different property lawyers. Be sure to seek confirmation that the fees are fixed.
I am tempted by the attractive purchase price for a two flats in Street both have approximately forty five years left on the lease term. should I be concerned?
There is no doubt about it. A leasehold apartment in Street is a wasting asset as a result of the reducing lease term. The nearer the lease gets to its expiry date, the more it adversely affects the salability of the premises. The majority of buyers and mortgage companies, leases with less than 75 years become less and less marketable. 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 a residence 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 Street 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. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. 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.
Street Conveyancing for Leasehold Flats - A selection of Queries before buying
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How many years are left on the lease? What is the yearly maintenance fee and ground rent?