My solicitor has identified a defect with the lease for the flat we are purchasing in Clydach. The other side have offered defective title insurance as a workaround. We are content with insurance and will cover the costs. Our lawyer has advised that he must ensure that the bank is happy with this solution. Are we the client or is the bank?
Notwithstanding that you have a mortgage offer from the lender does not mean to say that the property will meet their requirements for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook conditions. You and the lender are the client. The appropriate lender requirements have to be complied with.
I purchased a freehold residence in Clydach but nevertheless pay rent, why is this and what is this?
It is rare for properties in Clydach and has limited impact for conveyancing in Clydach 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 date back hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.
Old rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence after 2037 is to be dispensed with completely.
I have 71 years left on my lease and need a lease extension for my flat in Clydach. Conveyancing solicitors on the Virgin panel can deal with such extensions correct?
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are securing a mortgage then your lender may insist that the lease be extended before competition. Virgin have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 13/7/2019 the requirements read as follows :
five months have elapsed following my purchase conveyancing in Clydach concluded. I have checked the Land Registry site which shows that I paid £150,000 when infact I paid £215,000. Why the discrepancy?
The price paid figure is taken from the application to register the purchase. It is the figure included in the Transfer (the legal deed which transfers the property from one person to the other) and referred to as the 'consideration' or purchase price. You can report an error in the price paid figure using the LR online form. In most cases errors result from typos so at first glance the figure. Do report it so they can double check and advise.
Due to the input of my in-laws I had a survey completed on a house in Clydach in advance of retaining solicitors. I have been informed that there is a flying freehold element to the property. The surveyor advised that some mortgage companies will refuse to grant a loan on this type of house.
It depends who your proposed lender is. Bank of Scotland has different requirements from Halifax. Should you wish to call us we can check via the appropriate lender. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Clydach. Conveyancing may be slightly more expensive based on your lender's requirements.