A friend advised me that if I am purchasing in Bridgnorth I should ask my conveyancer to execute a Neighbourhood, Planning and Local Amenity Search. Can you explain what the purpose of this search is?
A search of this type is occasionally included in the estimate for your Bridgnorth conveyancing searches. It is not a small report of about 40 pages, listing and setting out significant information about Bridgnorth around the property and the people living there. It incorporates an Aerial Photograph, Planning Applications, Land Use, Mobile Phone Masts, Rights of Way, the Bridgnorth Housing Market, Council Tax Banding, the demographics of People living in the area, the dominant type of Housing, the Average Property Price, Crime statistics, Local Education with maps and statistics, Local Amenities and other useful data concerning Bridgnorth.
I am buying a new build apartment in Bridgnorth. Conveyancing is daunting at the best of times but I have never purchased a new build flat before. Can you give me some examples of some of the questions asked in new build conveyancing.
Set out below is a sample of a selection of leasehold new build enquiries that you may expect your new-build leasehold conveyancing in Bridgnorth
If there are lifts in the building, please confirm that the owners of flats on the ground and basement floors will not be required to contribute towards the cost of maintenance and renewal. Has the Lease plan been approved by the Land Registry and if not when will they be lodged for this purpose? Will control of the Management Company (if any) be handed over to purchasers on completion of the last sale or earlier? The Vendor must covenant to keep unsold units in good repair until long leases are granted therefore. Please provide evidence that the form of Lease proposed has been approved by the Land Registry.
Over the last few months I have been searching for a leasehold apartment up to £245,000 and found one close by in Bridgnorth I like with a park and railway links nearby, however it only has 61 years unexpired on the lease. I can't really find anything else in Bridgnorth suitable, so just wondered if I would be making a grave error purchasing a short lease?
If you require a home loan the shortness of the lease will be an issue. Reduce the price by the expected lease extension will cost if not already taken into account. If the current proprietor has owned the premises for at least 2 years you can ask them to commence the lease extension formalities and then assign it to you. An additional ninety years can be extended on to the existing lease and have £0 ground rent by law. You should speak to your conveyancing solicitor regarding this matter.
Last March I purchased a leasehold house in Bridgnorth. Am I liable to pay service charges for periods before completion of my purchase?
Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
I own a studio flat in Bridgnorth, conveyancing formalities finalised November 2011. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Similar flats in Bridgnorth with an extended lease are worth £195,000. The average or mid-range amount of ground rent is £45 charged once a year. The lease runs out on 21st October 2082
With 63 years unexpired we estimate the price of your lease extension to span between £16,200 and £18,600 plus legals.
The suggested premium range above a general guide to costs for renewing a lease, but we are not able to advice on a more accurate figure in the absence of comprehensive due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt additional concerns that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information before seeking the advice of a professional.
I own a leasehold flat in Bridgnorth. Conveyancing was completed in 2011. I have read on a number of consumer forums that I mustn’t allow the lease length fall too short. Why is that a problem?
Bridgnorth leasehold properties are for a set term - normally ninety nine years when they commenced. However a significant flats in Bridgnorth were constructed or converted in the 70’s80’s and so such leases now have fewer than eighty years remaining. This may sound like plenty of time however Banks, Building Societies and other mortgage lenders on the whole require leases to have a minimum of 75 years remaining to be mortgageable. Accordingly when you come to sell the property you will need to extend the term of your lease if you are getting close to seventy five years. To optimize your property value you should be thinking about whether to extend your lease long before you come to sell it. There are also strong financial reasons to taking action before the lease hits eighty years as when the lease is less than eighty years the premium you have to pay to extend starts to get a lot more expensive.