Our conveyancer has uncovered a defect with the lease for the flat we are buying in Flintshire. The other side have put forward defective title insurance as a workaround. We are happy with insurance and will cover the costs. Our solicitor says that he must check that the bank is willing to move forward with this solution. Are we the client or is the mortgage company ?
Even though you have a mortgage offer from the mortgage company does not mean to say that the property will meet their conditions for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook provisions. You and the lender are the client. The appropriate lender provisions have to be complied with.
I had intended to instruct a conveyancing solicitor in Flintshire for our house purchase. Our broker informed us that our mortgage lenders Lloyds TSB Bank won't deal with them. Surely this is unfair competition?
Banks tend to restrict either the type or the number of conveyancing solicitors on their panel. Typical examples of such restriction(s) being that a firm must have two or more partners. As well as restricting the type of firm, some have decided to limit the amount of solicitor practices they permit to act for them. You should note that Lloyds TSB Bank have no responsibility for the quality of advice provided by any member of Lloyds TSB Bank Conveyancer Panel. Mortgage fraud was a key driver in the reduction of conveyancing panels a few years ago even though there remains differing opinions about the level of solicitor involvement in some of that fraud. Data from the Land Registry indicate that thousands of law firms, including some in or near Flintshire only carry out very few conveyances per annum.
Various internet forums that I have visited warn that are the number one reason for obstruction in Flintshire house deals. Is that correct?
The Council of Property Search Organisations (CoPSO) released conclusions of a review by MoveWithUs that conveyancing searches do not feature within the most frequent causes of delays during the legal transfer of property. Local searches are unlikely to feature in any holding up conveyancing in Flintshire.
I am attracted to a two maisonettes in Flintshire both have approximately forty five years left on the leases. Will this present a problem?
There is no doubt about it. A leasehold flat in Flintshire is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to its expiry date, the more it adversely affects the marketability of the property. For most purchasers and banks, leases with less than 75 years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Flintshire conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Leasehold Conveyancing in Flintshire - Examples of Questions you should consider Prior to Purchasing
The answer will be useful as a) areas can result in problems for the building as the communal areas may start to deteriorate where maintenance remain unpaid b) if the leaseholders have an issue with the managing agents you will wish to have all the details How is the lease structured?
At last I have had an offer on an maisonette in Flintshire agreed to, the vendor does however have an associated purchase. The owners have submitted an offer on a property, however it’s not yet tied up, and has viewings of other flats in the pipeline. I have selected a nearby conveyancing solicitor in Flintshire. What do I do now? At what stage should I apply for the mortgage with Lloyds?
It is standard to have anxieties where there is an associated chain as you are unlikely to want to incur costs prematurely (home loan application is in the region of one thousand pounds, then valuation, Flintshire conveyancing search fees, etc). First, you must ensure that your property lawyer is on the Lloyds conveyancing panel. Concerning the subsequent steps this very much dictated by the circumstances of your transaction, desire for the property and on the state of the market. During a hot market many purchasers would apply for a home loan with Lloyds and pay for the survey and only if it was satisfactory would they request their conveyancing practitioner to press on with searches.