The vendors of the house we are hoping to buy hired a conveyancing solicitor in Croesyceiliog who has recommended a lock out contract with a down payment of 5k. Is it wise to enter into such agreements?

There are a couple of main concerns with entering into any lock out contract (occasionally termed a shut-out contract) is that it diverts attention away from making progress with the conveyancing transaction itself, so in the absence of it needing little or no negotiation then it may turn out to be a hindrance. It is not strongly advocated by Croesyceiliog conveyancing lawyers as a result. The other main issue is the extent of the remedies available - a jilted purchaser is not likely to secure an injunction to stop the seller selling to a third party, so the only remedy available under the contract will be the recovery of wasted charges and, in limited situations, the additional payment of damages.

I purchased a freehold property in Croesyceiliog but still invoiced for rent, why is this and what is this?

It is rare for properties in Croesyceiliog and has limited impact for conveyancing in Croesyceiliog 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 have existed for hundreds of years, but the Rent Charge Act 1977 barred the establishment of fresh rentcharges from 1977 onwards.

Previous rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be dispensed with completely.

I am buying a new build house in Croesyceiliog with a loan from Aldermore. The developers refused to move on the amount so I negotiated £7000 of additionals instead. The property agent suggested that I not disclose to my lawyer about the extras as it would put at risk my loan with the lender. Is this normal?.

All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.

Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.

Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.

My father-in-law has suggested that I appoint his conveyancers in Croesyceiliog. Should I use them?

Much as we are happy to recommend a Croesyceiliog conveyancing lawyer the best way to find a conveyancing practitioner is to have recommendations from friends or family who have previously instructed the conveyancer that you are contemplating using.

What makes a Croesyceiliog lease unacceptable for security purposes?

There is nothing unique about leasehold conveyancing in Croesyceiliog. Most leases are drafted differently and drafting errors can result in certain sections are not included. The following missing provisions could result in a defective lease:

A provision for the recovery of money spent for the benefit of another party. A duty to insure the building

A defective lease can cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Nationwide Building Society, Chelsea Building Society, and Aldermore all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to provide security, forcing the buyer to pull out.

Leasehold Conveyancing in Croesyceiliog - Examples of Queries Prior to buying

What is the the remaining lease term? If a Croesyceiliog lease has less than 80 years it will impact the value of the apartment. It is worth checking with your lender that they are willing to to proceed given the lease term. Leases with fewer than 80 years remaining means that you will probably have to extend the lease sooner rather than later and it is worth finding out what this would cost. For most Croesyceilioglease extensions you would be be obliged to have owned the residence for a couple of years in order to be legally able to extend the lease. Best to be warned whether fixing the lift or some other significant cost is coming up that will be shared amongst the leaseholders and may well materially impact the level of the maintenance charges or require a one time payment.