Our solicitor has uncovered a defect with the lease for the property we are purchasing in Urmston. The seller’s lawyers have suggested defective title insurance as a solution. We are content with insurance and will cover the costs. Our property lawyer has advised that he must check that the mortgage company is content 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 property lawyer must comply with the UK Finance Lenders’ Handbook specifications. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the bank 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.
I am the registered owner of a freehold premises in Urmston yet pay rent, why is this and what is this?
It’s unusual for properties in Urmston and has limited impact for conveyancing in Urmston 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 establishment 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 after 2037 is to be dispensed with completely.
The estate agent has sent us the confirmation of our purchase of a new build flat in Urmston. Conveyancing is daunting 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 conveyancing.
Here are examples of a selection of leasehold new build questions that you can expect your new-build leasehold conveyancing in Urmston
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Please provide evidence that the form of Lease proposed has been approved by the Land Registry. Please supply a car parking plan. The Lease must contain a provision on behalf of the Vendor to pay the service charges in respect of unoccupied units in order to ensure that all services can be provided. 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 input of my in-laws I had a survey completed on a property in Urmston before retaining lawyers. I have been advised that there is a flying freehold aspect to the house. My surveyor advised that some mortgage companies tend not give a loan on a flying freehold house.
It varies from the lender to lender. Santander has different requirements for example to Halifax. If you e-mail us we can look into this further with the appropriate bank. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Urmston. Conveyancing will be smoother if you use a solicitor in Urmston especially if they are familiar with such properties in Urmston.
Do I need to be wary that brokers that I am dealing with are encouraging me to use a factory type conveyancing firm as opposed to a local Urmston conveyancing firm?
As with many service providers, often recommendations from family and friends can be extremely useful or valuable. But there are many parties with a vested interest in a conveyancing deal; estate agents, mortgage brokers and mortgage companies may suggest conveyancers to retain. Sometimes these solicitors might be known to one of the organisations as being good in their field, but sometimes there exists a financial incentive behind the endorsement. You are at liberty to appoint your own lawyer. However, bear in mind that some lenders specify a panel list of lawyers you are obliged to use for the mortgage related work in your transaction.
Is there a reason that Urmston conveyancing charges are more expensive for leasehold and freehold properties?
Inevitably there is more work required for leasehold conveyancing. Urmston has many leasehold properties. There is more hours involved in the purchase: for example, the lease and leasehold information (including current service charge, ground rent and buildings insurance details) obtained from the freeholder or managing agents. There are strict criteria that the lease must meet in order to be acceptable to a mortgage company. If it does not meet these requirements, the lease must be amended, which can involve additional expense for the seller.