The sellers of the property we are hoping to buy have instructed a conveyancing firm in Grays who has insisted on a exclusivity contract with a down payment 6,000. Are such contracts recommended for Grays conveyancing transactions?
There are two primary concerns with entering into any lock out contract (also known as a shut-out contract) is that it diverts attention away from moving forward with the conveyancing transaction itself, so unless it requires minimal or no negotiation then it may turn out to be a hindrance. It is not promoted amongst Grays conveyancing lawyers for this reason. A supplemental issue is the extent of the remedies available - a jilted purchaser should not expect to be issued with an injunctive ruling by a court to prevent the seller selling to another buyer, so the only remedy open via the agreement will be the reimbursement of abortive costs and, in restricted situations, the extra payment of damages.
Is there a reason why leasehold purchase conveyancing in Grays costs more?
In summary, leasehold conveyancing in Grays and Essex usually involve more work compared to freehold transactions. This includes lease investigation, liaising with the landlord concerning serving applicable notices, procuring current service charge and management information, securing the freeholder’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – regardless of the fact the lease has passed through many different property solicitors hands since it was first granted.
How does conveyancing in Grays differ for new build properties?
Most buyers of new build or newly converted property in Grays come to us having been asked by the seller to exchange contracts and commit to the purchase even before the house is completed. This is because builders in Grays typically acquire the site, 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 accustomed to new build conveyancing in Grays or who has acted in the same development.
Due to the guidance of my in-laws I had a survey completed on a property in Grays before instructing conveyancers. I have been advised that there is a flying freehold element to the property. Our surveyor has said that some banks will not issue a loan on this type of home.
It depends who your proposed lender is. HSBC has different requirements from Nationwide. If you e-mail us we can investigate further via the relevant bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Grays. Conveyancing may be slightly more expensive based on your lender's requirements.
Our solicitor in Grays has discovered a a legal deficiency with the lease for the apartment we are buying in Grays. The seller’s lawyers have offered title insurance as a solution. We are content with insurance and will pay for it. Our solicitor says that as he is on the lender conveyancing panel he must check that the lender is happy 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 mortgage company are the client. A precondition to being on the mortgage company approved panel is to comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects will the lease so that the lender 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.