I am nearing exchange of contracts for my house in Walthamstow Village and the estate agent has just text me to warn that the purchasers are changing their law firm. The excuse is that the bank will only engage with solicitors on their conveyancing panel. On what basis would a leading mortgage company only engage with certain law firms rather the firm that they want to choose for their conveyancing in Walthamstow Village ?
Banks have always had panels of law firms that can act for them, but in recent years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Lending institutions point to the increase in fraud as the reason for the cull – criteria have been tightened as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The buyers are not going to have any impact on this.
The owners have very assertive sellers who has suggested a lock out agreement with a non-refundable deposit 6,000. Are such contracts appropriate for Walthamstow Village conveyancing transactions?
There are two main downsides with executing a lock out agreement (also termed a no-shop agreement) is that it diverts attention away from making progress with the conveyancing transaction itself, so in the absence of it needing little or no negotiation then it may turn out to be unhelpful. It is not promoted by Walthamstow Village conveyancing practitioners for this reason. A further issue is the extent of the remedies available - a jilted purchaser is not likely to be issued with an injunction to stop the vendor completing the sale to another buyer, so the only remedy open via the contract will be the reimbursement of abortive charges and, in restricted circumstances, the additional payment of penalties.
Why is leasehold purchase conveyancing in Walthamstow Village is more expensive?
Walthamstow Village leasehold properties involve far more paperwork than a freehold purchase, and therefore takes more time to examine and advise upon.Conveyancing will involve the lease having to be checked which is usually a lengthy document, queries raised to ensure that the covenants and conditions have been observed. If it is a flat there will be a management company in existence and the accounts of this will need to be checked and enquiries raised to ensure it is operating efficiently and that all monies due have been paid by the Seller to the company and if not ensuring that money is paid up to date or the appropriate undertakings obtained.
Will my lawyer be raising enquiries regarding flooding during the conveyancing in Walthamstow Village.
The risk of flooding is if increasing concern for solicitors dealing with homes in Walthamstow Village. There are those who purchase a house in Walthamstow Village, fully aware that at some time, it may suffer from flooding. However, aside from the physical damage, if a house is at risk of flooding, it may be difficult to get a mortgage, suitable insurance cover, or dispose of the premises. Steps can be carried out as part of the conveyancing process to forewarn the purchaser.
Lawyers are not qualified to give advice on flood risk, however there are a numerous checks that can be carried out by the buyer or by their lawyers which should give them a better appreciation of the risks in Walthamstow Village. The standard completed inquiry forms given to a purchaser’s solicitor (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a standard inquiry of the seller to discover whether the premises has suffered from flooding. If flooding has previously occurred which is not revealed by the seller, then a purchaser could bring a compensation claim as a result of such an misleading reply. A buyer’s lawyers may also carry out an enviro report. This will indicate if there is any known flood risk. If so, additional inquiries will need to be carried out.
Are there restrictive covenants that are commonly picked up as part of conveyancing in Walthamstow Village?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the legal transfer of property in Walthamstow Village. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
Yesterday I discovered that there is a flying freehold element on a house I put an offer in last month in what was supposed to be a quick, no chain conveyancing. Walthamstow Village is where the house is located. Is there any advice you can give?
Flying freeholds in Walthamstow Village are not the norm but are more likely to exist in relation to terraced houses. Even though you don't necessarily need a conveyancing solicitor in Walthamstow Village you would need to get your solicitor to go 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 Walthamstow Village may decide 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.