I am selling my flat in Earlsfield and the EA has just text me to say that the purchasers are appointing a new property lawyer. I am told that this is due to the fact that the mortgage company will only work with solicitors on their conveyancing panel. Why would a big named lender only work with certain law firms rather the firm that they want to choose for their conveyancing in Earlsfield ?
Lenders have always had panels of law firms they are willing to work with, but in the past few years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for more than 15 years.
Banks justify this action to a rise in fraud by way of justification for the reduction – criteria have been stiffened as a smaller panel is easier to keep an eye on. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your purchasers are not going to have any sway in the decision.
I own a freehold property in Earlsfield but nevertheless invoiced for rent, why is this and what is this?
It is rare for properties in Earlsfield and has limited impact for conveyancing in Earlsfield 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 many centuries, but the Rent Charge Act 1977 barred the establishment of fresh rentcharges from 1977 onwards.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 is to be extinguished.
I was pointed in your direction by a number of selling agents in Earlsfield to get a quote from a property lawyer using your seach tool. Is there a financial upside for Estate Agents to promote your lawyers ahead of another?
We don’t give any commission for directing people to this site. We thought it would be too underhand to pay a commission because a client could think, ‘How come the agent getting a kickback? Why am I not receiving any benefit too?’ So we decided to step away from that.
I work for a reputable estate agency in Earlsfield where we have witnessed a few flat sales derailed as a result of short leases. I have received contradictory information from local Earlsfield conveyancing solicitors. Please can you clarify whether the seller of a flat can initiate the lease extension process 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 commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or simultaneously with completion of the sale.
An alternative approach is to agree the lease extension with the freeholder 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 have attempted and failed to negotiate with my landlord for a lease extension without getting anywhere. Can the Leasehold Valuation Tribunal decide on such issues? Can you recommend a Earlsfield conveyancing firm to represent me?
Absolutely. We are happy to put you in touch with a Earlsfield conveyancing firm who can help.
An example of a Freehold Enfranchisement decision for a Earlsfield property is 35 Trewint Street in February 2012. The Tribunal arrived at a premium of £32 425 for the freehold reversion. The matter was transferred back to the court for further consideration which required the applicants pay the premium (less any assessed costs) into court after which the court would execute a transfer of the freehold. This case affected 2 flats. The remaining number of years on the lease was 70.57 years.
My son is about to join the property ladder, the home loan was agreed last week in principle. When the seller agreed the offer on the apartment we contacted the mortgage company to progress the mortgage application. We were disappointed to discover that mortgage companies do not accept all solicitor, they have to be on a list, is this right?
Mortgage Companies tend to imposes restrictions either the type or the number of conveyancing practices on their panel. Typical examples of such restriction(s) being that a firm must have two or more partners. In addition to restricting the type of firm, some have decided to limit the number of firms they use to represent them. You should note that lenders have no responsibility for the quality of advice provided by any Earlsfield property lawyer on their panel. Mortgage fraud was a key driver in the rationalisation of conveyancing panels a few years ago and whilst there are differing views about the extent of solicitor involvement in some of that fraud. Statistics from the Land Registry reveal that thousands of law firms only carry out one or two conveyances a year. Those supporting conveyancing panel cuts ask why law firms should have the right to be on a Lender panel when clearly, conveyancing is not their speciality. To put it another way; would you want a conveyancing solicitor to represent you if you were charged with a crime? Presumably not.