My lawyer has discovered a a legal deficiency with the lease for the flat we are purchasing in Brixworth. The seller’s lawyers have offered title insurance as a solution. We are happy with insurance and will pay for it. Our conveyancer has advised that he must ensure that the bank is content with this solution. Are we the client or is the bank?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the mortgage company are the client. Your solicitor must comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company 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 lawyer will have no choice but to discontinue acting for you.
Is it necessary during the course of the conveyancing process to pop into the offices of the solicitor to sign the mortgage deed? If so, I will appoint a lawyer who conducts conveyancing in Brixworth so that I can pop in to their offices if necessary.
As opposed to twenty years ago, most lenders no longer need their conveyancing panel lawyer to witness the mortgagors signature. It will still be necessary for you to supply identification documents and there are still distinct benefits to choosing a local ayer, in your situation a conveyancing solicitor in Brixworth.
It is not clear whether my mortgage offer requires a lease extension. I have telephoned my Brixworth building society branch on a couple of occasions and was told they are content with the situation and they will lend. My Brixworth conveyancing solicitor - who is on the lender conveyancing panel- called to say that they refuse to lend based on their UK Finance Lenders’ Handbook minimum lease term requirements. I simply don't know who is right.
Your property lawyer must comply with the Council of Mortgage Lenders’ Handbook Part 2 conditions for your lender. Unless your lawyer obtains specific confirmation in writing that the lender 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.
Principality have agreed my home loan in principle, my bid on a house in Brixworth has been agreed to, what are the next steps?
The estate agent will need to be advised as to your lawyer's details (ensure that the conveyancing practitioners are on the lender’s approved list). Telephone Principality or your broker and finish off any appropriate documentation. Principality will sellect a valuer who will get in touch with the selling agent or owners to arrange an appointment. Once conducted (assuming no problems) it takes approximately a fortnight to receive the mortgage offer. Principality will issue the offer to you and your conveyancing practitioners. The legal work will then take it’s course according the nature and complexity of the conveyancing in Brixworth.
My offer on a semi in Brixworth has been agreed to, but there is a chain. The owners have put an offer on a flat, but it’s not been accepted yet, and are looking at other apartments booked. I have instructed a nearby conveyancing solicitor in Brixworth. What do I do now? At what stage should I apply for the mortgage with Lloyds?
It is understandable to have anxieties where there is a chain as you are unlikely to want to be too out of pocket prematurely (mortgage application is approx one thousand pounds, then survey, Brixworth conveyancing search charges, etc). First, you must check that your conveyancing practitioner is on the Lloyds approved list. Concerning the subsequent steps this very much dictated by the circumstances of your transaction, desire for the property and on the state of the market. During a hot market some home buyers would apply for the mortgage with Lloyds and arrange for the valuation and only if it was satisfactory would they ask their conveyancer to press on with the conveyancing in Brixworth.
How does conveyancing in Brixworth differ for new build properties?
Most buyers of new build residence in Brixworth come to us having been asked by the seller to exchange contracts and commit to the purchase even before the premises is ready to move into. This is because builders in Brixworth usually acquire 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 property lawyers 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 Brixworth or who has acted in the same development.
Do you have any advice for leasehold conveyancing in Brixworth from the perspective of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Brixworth can be bypassed where you appoint lawyers as soon as you market your property and ask them to collate the leasehold documentation needed by the purchasers’ conveyancers. If you hold a share in a the Management Company, you should ensure that you hold the original share document. Obtaining a new share certificate is often a time consuming process and slows down many a Brixworth home move. If a duplicate share certificate is required, do contact the company officers or managing agents (where applicable) for this as soon as possible. If there is a history of any disputes with your freeholder or managing agents it is essential that these are settled before the property is marketed. The purchasers and their solicitors will be reluctant to purchase a property where there is an ongoing dispute. You may need to swallow your pride and discharge any arrears of service charge or resolve the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose particulars of the dispute to the purchasers, but it is clearly preferable to present the dispute as over rather than ongoing. You may think that you are aware of the number of years left on your lease but it would be advisable double-check via your conveyancers. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the lease term is less than 75 years. In the circumstances it is important at an as soon as possible that you identify whether the lease for your property needs extending. If it does, contact your solicitors before you put your premises on the market for sale.
I invested in buying a 1st floor flat in Brixworth, conveyancing formalities finalised half a dozen years ago. How much will my lease extension cost? Comparable properties in Brixworth with a long lease are worth £186,000. The ground rent is £55 charged once a year. The lease ceases on 21st October 2078
With just 52 years left to run the likely cost is going to range between £29,500 and £34,000 plus costs.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we are not able to advice on a more accurate figure without more detailed investigations. You should not use the figures in a Notice of Claim or as an informal offer. There are no doubt other issues that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. Neither should you take any other action placing reliance on this information without first seeking the advice of a professional.