My partner and I are buying a new build duplex in Durham and my lawyer is advising me that she is duty bound to the bank to disclose incentives from the builder. I am under pressure to sign contracts and I have no desire to delay deal. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your solicitor. A precondition to being on a bank panel is to comply with the UK Finance Lenders’ Handbook specifications. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
I am assisting my sister sell her house in Durham. Will the solicitor order the energy assessment or should I organise this?
After the abolition of Home Packs, energy performance certificates was retained a compulsory component of moving property. An energy performance certificate should be commissioned prior to the property being marketed. It is not a task that conveyancers normally arrange. Where you are instructing a Durham conveyancing solicitor they might help arrange energy assessments given their contacts with reputable local accredited person
I have a mortgage with Co-operative for my property in Durham. Conveyancing has been completed some time ago. If I am intending to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Co-operative?
Your original mortgage agreement with Co-operative will provide that you need their approval in advance of letting out your property as this is likely to be a breach of Co-operative’s mortgage conditions. It may be that Co-operative will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Co-operative directly. It should not be necessary to do this via a Co-operative conveyancing panel lawyer.
I had an offer accepted on a property in Durham on 6/3/2019, valuation was booked five days after, all came back fine. Conveyancer instructed, so the only thing outstanding was my mortgage offer. Having made daily calls to Principality and chasing them on my offer, I have now been told that my offer will not be issued unless the lawyer is on the Principality conveyancing panel. Are Principality entitled to hold back the Mortgage pending the lawyer being on the approved list?
Mortgage companies tend not to not issue an offer until they have details of a lawyer on their panel. It can take a few weeks for Principality to deal with your lawyer's application to be on the Principality conveyancing panel. There's no guarantee that your solicitor will be accepted.
Should our conveyancer be raising questions about flooding as part of the conveyancing in Durham.
Flooding is a growing risk for conveyancers carrying out conveyancing in Durham. Plenty of people will purchase a house in Durham, fully aware that at some time, it may be flooded. However, leaving to one side the physical destruction, if a property is at risk of flooding, it may be difficult to get a mortgage, satisfactory building insurance, or dispose of the premises. There are steps that can be taken as part of the conveyancing process to forewarn the buyer.
Conveyancers are not best placed to impart advice on flood risk, but there are a numerous searches that can be undertaken by the purchaser or on a buyer’s behalf which should give them a better appreciation of the risks in Durham. The conventional set of property information forms given to a buyer’s lawyer (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a usual inquiry of the owner to determine whether the premises has ever been flooded. In the event that the premises has been flooded in past which is not revealed by the vendor, then a buyer could commence a claim for damages as a result of such an incorrect reply. A purchaser’s conveyancers should also order an environmental search. This should higlight whether there is any known flood risk. If so, further investigations should be carried out.
I am purchasing a new build house in Durham with a loan from Chelsea Building Society. The developers refused to reduce the price so I negotiated five thousand pounds worth of extras instead. The estate agent told me not inform my solicitor about the side-deal as it could adversely affect my mortgage with Chelsea Building Society. Should I keep quiet?.
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.
What are the common problems that you witness in leases for Durham properties?
Leasehold conveyancing in Durham is not unique. All leases are individual and legal mistakes in the legal wording can result in certain sections are wrong. For example, if your lease is missing any of the following, it could be defective:
Repairing obligations to or maintain elements of the premises Maintenance charge proportions which don’t add up to the correct percentage
A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Bank of Scotland, and Godiva Mortgages Ltd all have very detailed requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to grant the mortgage, forcing the purchaser to pull out.
Durham Leasehold Conveyancing - Examples of Questions you should ask Prior to Purchasing
You will want to discover as much as you can about the company managing the block as they can either make your living at the property much simpler or uncomfortable. Being a leasehold owner you will be in the clutches of the managing agents both financially and when it comes to every day matters such as the upkeep of the communal areas. Enquire of other people if they are happy with their service. In conclusion, find out the dates that you are obliged pay the maintenance charge to the managing agents and specifically what you get for your money. The majority of Durham leasehold flats will incur a service charge for maintenance of the building set by the management company. Where you buy the property you will have to pay this amount, normally periodically accross the year. This may be anything from a couple of hundred pounds to thousands of pounds for blocks with lifts and large common grounds. In all probability there will be a rentcharge for you to pay annual, this is usually not a significant amount, say approximately £50-£100 but you need to check as sometimes it could be prohibitively expensive. Does the lease include onerous restrictions?