Our solicitor has identified a a legal deficiency with the lease for the flat we are purchasing in County Durham. The seller’s lawyers have offered defective title insurance as a workaround. We are content with insurance and will cover the costs. Our lawyer says that he must check that the lender is willing to move forward with this solution. Who is the client here, us or the bank?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the bank are the client. Your property lawyer must comply with the UK Finance Lenders’ Handbook provisions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the bank 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 property lawyer will have no choice but to discontinue acting for you.
It is a dozen years since I purchased my home in County Durham. Conveyancing solicitors have now been appointed on the sale but I am unable to locate the deeds. Is this a major issue?
Don’t worry too much. First there is a chance that the deeds will be retained by the mortgage company or they may still be with the solicitor who oversaw the purchase. Secondly in most cases the title will be registered at the land registry and you will be able to establish that you are the registered owner by your conveyancing lawyers procuring current official copies of the land registers. The vast majority of conveyancing in County Durham involves registered property but in the rare situation where your property is unregistered it adds to the complexity but is not insurmountable.
I am considering applying for a Kent Reliance mortgage for purchase of a new build (under development) in County Durham with 60% loan to value. Is it compulsory to choose a solicitor on the conveyancing panel for Kent Reliance ?
In theory, you could use a solicitor that is not on the Kent Reliance conveyancing panel, but Kent Reliance would require one of their panel solicitors to be instructed to act in their interests, and you'd have to pay for this - so most people instruct a panel solicitor. It's also easier, as otherwise you'd have to deal with two solicitors for the same transaction.
I am looking for a leasehold apartment up to £305k and found one close by in County Durham I like with a park and transport links nearby, however it only has 61 remaining years left on the lease. I can't really find anything else in County Durham for this price, so just wondered if I would be making a grave error acquiring a lease with such few years left?
Should you need a mortgage that many years may be a potential deal breaker. Discount the price by the amount the lease extension will cost if not already taken into account. If the existing owner has owned the premises for a minimum of 2 years you can ask them to commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the existing lease term with a zero ground rent applied. You should consult your conveyancing lawyer regarding this matter.
How can the Landlord & Tenant Act 1954 impact my commercial property in County Durham and how can you help?
The particular law that you refer to affords security of tenure to business leaseholders, granting the a statutory right to apply to court for a continuation of occupancy at the end of an expired lease. There are limited grounds that a landlord can refrain from granting a lease renewal and the rules are complex. We are happy to direct you to commercial conveyancing firms who use the act for protection and assist with commercial conveyancing in County Durham