Our son is purchasing a house that has just been built in Undy with a home loan from Bank of Ireland. His solicitor has said that there is a delay in receiving the ‘Disclosure of Incentive Form’. Who needs to receive the form?
The document is intended to provide information to the main parties engaged in the purchase. Therefore, it will be provided to your son’s lawyer who should be on the Bank of Ireland conveyancing panel as a standard part of the process, and to the surveyor when requested. The developer will be required to start the process by downloading the form and completing it. The form will therefore need to be available for the valuer at the time of his or her site visit. The form should be sent to the Bank of Ireland conveyancing panel solicitor as early as possible, in order to avoid any last minute delays, and no later than at exchange of contracts.
I purchased a freehold premises in Undy yet charged rent, why is this and what is this?
It is rare for properties in Undy and has limited impact for conveyancing in Undy but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back hundreds of years, but the Rent Charge Act 1977 barred the generation of fresh rentcharges post 1977.
Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.
I have been advised by my solicitor that restrictive coveneant insurance is needed on my purchase. What is the typical level of cover needed for conveyancing in Undy?
The right level of restrictive coveneant indemnity insurance depends on who your lender is. It would differ for example between Halifax and Chelsea Building Society. Conveyancing lawyers as opposed to borrowers take out such insurances.
My partner and I are spending time viewing flats in Undy and I am now considering a potential offer. Is it premature to have a solicitor in place? I intend to finance via a mortgage with Nottingham.
You should start obtaining conveyancing quotes from solicitors ASAP. After you have chosen your lawyer and once your offer is accepted you can instruct them to work for you and pass their details on to the selling agent. As you are getting a mortgage with Nottingham, make sure you remember to check that your lawyer is on the Nottingham conveyancing panel.
I can not work out if my bank requires a lease extension. I have called into my local Undy bank branch on numerous occasions and was told it wasn't an issue and they will lend. My Undy conveyancing solicitor - who is on the lender conveyancing panel- telephoned and was told they would not lend based on their specific requirements. I simply don't know who is right.
Provided that the property lawyer is on the mortgage company panel, she or he must adhere to the CML Handbook provisions for the lender. Unless your lawyer obtains specific confirmation in writing that the bank will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the mortgage company to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
I'm buying my first flat in Undy with a loan from The Mortgage Works. The sellers refused to reduce the price so I negotiated £7000 of additionals instead. The estate agent told me not to tell my solicitor about this extras as it may adversely affect my loan with the lender. Do I keep my lawyer in the dark?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I have been on the look out for a leasehold apartment up to £235,500 and identified one round the corner in Undy I like with amenity areas and railway links nearby, however it only has 49 remaining years left on the lease. I can't really find anything else in Undy suitable, so just wondered if I would be making a mistake purchasing a lease with such few years left?
If you need a home loan that many years will be an issue. Reduce the offer by the expected lease extension will cost if not already taken into account. If the current owner has owned the premises for a minimum of 2 years you can ask them to start the process of the extension and pass it to you. You can add 90 years to the current lease term with a zero ground rent applied. You should consult your conveyancing lawyer regarding this.
I am intending to rent out my leasehold flat in Undy. Conveyancing solicitor who did the purchase is retired - so can't ask her. Is permission from the freeholder required?
The lease governs relations between the freeholder and you the leaseholder; in particular, it will indicate if subletting is prohibited, or permitted but only subject to certain caveats. The accepted inference is that if the lease contains no expres ban or restriction, subletting is allowed. The majority of leases in Undy do not contain subletting altogether – such a clause would undoubtedly devalue the property. In most cases there is a basic requirement that the owner notifies the freeholder, possibly supplying a copy of the tenancy agreement.
I own a ground floor flat in Undy, conveyancing was carried out in 1997. Can you let me have an estimated range of the fair premium for a lease extension? Equivalent flats in Undy with a long lease are worth £216,000. The average or mid-range amount of ground rent is £50 charged once a year. The lease expires on 21st October 2094
With just 69 years unexpired we estimate the price of your lease extension to span between £9,500 and £11,000 plus professional fees.
The figure that we have given is a general guide to costs for extending a lease, but we are not able to advice on the actual costs in the absence of detailed due diligence. Do not use this information in a Notice of Claim or as an informal offer. There may be additional concerns that need to be considered and clearly you should be as accurate as possible in your negotiations. You should not take any other action placing reliance on this information without first seeking the advice of a professional.