My conveyancer has discovered a defect with the lease for the apartment we are buying in Cullompton. The seller’s lawyers have offered title insurance as a workaround. We are content with insurance and will pay for it. Our conveyancing practitioner has advised that he must ensure that the bank is content with this solution. Who is the client here, us or the mortgage company ?
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 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 lender 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 lawyer will have no choice but to discontinue acting for you.
Why is leasehold purchase conveyancing in Cullompton costs more?
The conveyancing fees for a leasehold property in Cullompton is inevitably higher as compared to a freehold acquisition or disposal. This is due to the additional time required in liaising with the freeholder and managing agents to collate the information about whether the rent and service charges have been cleared and whether there are any large sums expected to be spent in the near future on repairs or maintenance of the block.
I require fast conveyancing in Cullompton as I am under pressure to complete within one month. A home loan is not required. Is it possible to escape the need for conveyancing searches to save fees and time?
If.Given you are not obtaining a mortgage you are at liberty not to do searches although no lawyer would advise that you don't. Drawing on our experience of conveyancing in Cullompton the following are instances of what can arise and therefore impact the marketability of the property: Enforcement Actions, Overdue Fees, Outstanding Grants, Unadopted Roads,...
I am looking for a ground for flat up to £195,000 and found one near me in Cullompton I like with open areas and railway links in the vicinity, the downside is that it only has 52 years on the lease. I can't really find anything else in Cullompton in this price bracket, so just wondered if I would be making a grave error purchasing a lease with such few years left?
If you need a mortgage that many years will be a potential deal breaker. Discount the price by the anticipated lease extension will cost if it has not already been discounted. If the current proprietor has owned the property for at least 2 years you can request that they start the process of the extension and pass it to you. You can add 90 years to the current lease term with a zero ground rent applied. You should consult your conveyancing solicitor concerning this.
I work for a reputable estate agent office in Cullompton where we have witnessed a number of flat sales derailed due to leases having less than 80 years remaining. I have been given inconsistent advice from local Cullompton conveyancing solicitors. Please can you confirm whether the vendor of a flat can initiate the lease extension formalities for the buyer?
As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser need not have to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the disposal of the property.
Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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 buyer.
I acquired a leasehold flat in Cullompton, conveyancing having been completed in 2010. 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? Comparable properties in Cullompton with an extended lease are worth £211,000. The average or mid-range amount of ground rent is £45 invoiced every year. The lease comes to an end on 21st October 2087
With only 67 years unexpired the likely cost is going to span between £10,500 and £12,000 plus plus your own and the landlord's "reasonable" professional fees.
The figure that we have given is a general guide to costs for extending a lease, but we cannot give you the actual costs without more detailed due diligence. You should not use the figures in a Notice of Claim or as an informal offer. There may be additional issues that need to be taken into account and you obviously want to be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first getting professional advice.