My partner and I are acquiring a newly constructed apartment in Woodbury and my conveyancer is advising me that she is duty bound to the lender to reveal incentives from the seller. I am nearing the developer’s deadline to sign contracts and my preference is not to prolong deal. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your property lawyer. A precondition to being on a lender panel is to comply with the UK Finance Lenders’ Handbook provisions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
I am the registered owner of a freehold premises in Woodbury but still charged rent, why is this and what is this?
It’s unusual for properties in Woodbury and has limited impact for conveyancing in Woodbury 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 have existed for many centuries, but the Rent Charge Act 1977 barred the generation of fresh rentcharges post 1977.
Old rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence post 2037 will be extinguished.
Should my conveyancer be raising questions regarding flooding as part of the conveyancing in Woodbury.
The risk of flooding is if increasing concern for solicitors specialising in conveyancing in Woodbury. Some people will acquire a property in Woodbury, completely expectant that at some time, it may suffer from flooding. However, leaving to one side the physical damage, if a house is at risk of flooding, it may be difficult to obtain a mortgage, suitable building insurance, or dispose of the premises. Steps can be carried out as part of the conveyancing process to forewarn the buyer.
Solicitors are not qualified to impart advice on flood risk, but there are a various searches that can be initiated by the purchaser or on a buyer’s behalf which will give them a better understanding of the risks in Woodbury. The standard information supplied to a buyer’s solicitor (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a standard inquiry of the seller to discover if the property has suffered from flooding. If flooding has previously occurred and is not notified by the owner, then a buyer may bring a claim for damages resulting from an incorrect reply. A buyer’s lawyers will also conduct an enviro report. This should higlight if there is any known flood risk. If so, further inquiries should be made.
I am buying my first flat in Woodbury with a mortgage from Barnsley Building Society. The builders refused to budge the amount so I negotiated £7000 of additionals instead. The property agent told me not reveal to my lawyer about this deal as it could impact my mortgage with the bank. Is this normal?.
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've recently found out that there is a flying freehold element on a house I have offered on a fortnight ago in what was supposed to be a quick, no chain conveyancing. Woodbury is where the house is located. Can you shed any light on this issue?
Flying freeholds in Woodbury are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Woodbury you would need to get your solicitor to go through the deeds diligently. Your mortgage company may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Woodbury 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.
Are there common defects that you encounter in leases for Woodbury properties?
There is nothing unique about leasehold conveyancing in Woodbury. Most leases are individual and legal mistakes in the legal wording can sometimes mean that certain provisions are erroneous. For example, if your lease is missing any of the following, it could be defective:
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Repairing obligations to or maintain parts of the premises Clauses dealing with recovering service charges for expenditure on the building or common parts.
You could encounter difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Chelsea Building Society, and Bank of Ireland all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to provide security, forcing the purchaser to withdraw.
Leasehold Conveyancing in Woodbury - Sample of Queries Prior to Purchasing
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You should be aware if it is fewer than 80 years it will impact the value of the apartment. It is worth checking with your bank that they are content with the length of the lease. A short lease means that you will almost definitely require a lease extension at some point and you need to have some idea of how much this will be. Remember, in most cases you will be be obliged to have been the owner of the residence for 24 months in order to be eligible to exercise a lease extension. Best to be warned if window replacement or some other significant cost is coming up that will be shared amongst the leaseholders and could well materially increase the the service fees or necessitate a one off invoice. Are there any major works in the near future that will likely increase the service fees?