I am in the process of selling my maisonette in Bedfordshire and the EA has just called to advise that the buyers are changing their property lawyer. The excuse is that the mortgage company will only work with solicitors on their conveyancing panel. Why would a big named lender only deal with specific solicitors rather the firm that they want to select to handle their conveyancing in Bedfordshire ?
Lenders have always had an approved set of law firms that can represent them, but in the past few years big names such as HSBC, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for many years.
Lenders point to the increase in fraud by way of justification for the cull – criteria have been narrowed as a smaller panel is easier to keep an eye on. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices that have been removed from panels. Plenty of firms are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your purchasers are not going to have any sway in the decision.
AssumingI was to purchase a straightforward housein Bedfordshire mortgage fee and have no survey and no conveyancing searches how much should I expect to have to pay for conveyancing in Bedfordshire?
The only reduction in fees you would make on is the Bedfordshire conveyancing searches. A conveyancer still got to do everything else - money laundering, liaising with the sellers conveyancing practitioner, SDLT return, register the property etc. A slight saving might be made by not needing to register a mortgage but it won't be meaningful.
I am mortgaging my apartment in Bedfordshire, does my lawyer have to be on the Leeds Building Society Conveyancing panel?
There is nothing to stop you using your solicitor, but Leeds Building Society will insist on their interests being represented by a firm on their conveyancing panel. There is much more potential for delays and confusion with an additional lawyer added to the mix, and it will undoubtedly be more expensive too.
Will my lawyer be raising enquiries concerning flooding during the conveyancing in Bedfordshire.
Flooding is a growing risk for conveyancers carrying out conveyancing in Bedfordshire. There are those who acquire a property in Bedfordshire, completely expectant that at some time, it may suffer from flooding. However, aside from the physical destruction, if a property is at risk of flooding, it may be difficult to obtain a mortgage, suitable building insurance, or sell the property. There are steps that can be taken during the course of a property purchase to forewarn the buyer.
Lawyers are not qualified to give advice on flood risk, however there are a number of checks that can be initiated by the purchaser or on a buyer’s behalf which can figure out the risks in Bedfordshire. The standard information supplied to a purchaser’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a usual question of the vendor to discover whether the premises has historically flooded. If the residence has been flooded in past which is not revealed by the seller, then a buyer may commence a claim for damages as a result of such an inaccurate reply. The buyer’s conveyancers should also order an environmental search. This will indicate whether there is a recorded flood risk. If so, further inquiries should be initiated.
I work for a reputable estate agency in Bedfordshire where we see a number of flat sales jeopardised due to short leases. I have been given inconsistent advice from local Bedfordshire conveyancing solicitors. Please can you clarify whether the seller of a flat can initiate the lease extension process for the purchaser on completion of the sale?
As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the disposal of the property.
An alternative approach is to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the purchaser.
I bought a 1st floor flat in Bedfordshire, conveyancing having been completed June 2007. Can you give me give me an indication of the likely cost of a lease extension? Equivalent properties in Bedfordshire with over 90 years remaining are worth £222,000. The average or mid-range amount of ground rent is £50 charged once a year. The lease ends on 21st October 2094
With 70 years left to run we estimate the price of your lease extension to range between £9,500 and £11,000 plus plus your own and the landlord's "reasonable" professional fees.
The figure above a general guide to costs for extending a lease, but we are not able to supply a more accurate figure in the absence of comprehensive due diligence. Do not use this information in a Notice of Claim or as an informal offer. There may be additional issues that need to be considered and you obviously want to be as accurate as possible in your negotiations. Please do not move forward based on this information before seeking the advice of a professional.