Our conveyancer has uncovered a defect with the lease for the property we are purchasing in Greater Manchester. The other side have suggested title insurance as a workaround. We are content with insurance and will pay for it. Our conveyancer has advised that he must be satisfied that the mortgage company is willing to move forward with this solution. Who is the client here, us or the lender?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the lender are the client. Your conveyancer must comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company 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 property lawyer will have no choice but to discontinue acting for you.
My lawyer in Greater Manchester is not listed on the Norwich and Peterborough Building Society Approved Panel. Is it possible for me to retain my family solicitor even though they are not on the Norwich and Peterborough Building Society panel?
Your options are as follows:
- Carry on with your existing Greater Manchester lawyers but Norwich and Peterborough Building Society will need to instruct a lawyer on their list of acceptable firms. This will result in additional overall legal fees and cause frustration.
- Get an alternative lawyer to act in the purchase, not forgetting to check they are Convince your solicitor to do everything within their powers to join the Norwich and Peterborough Building Society conveyancing panel
This question may be naive but I am unexperienced as a first time purchaser of a two bedroom flat in Greater Manchester. Do I pick up the keys to the property on the completion date from my lawyer? If this is the case, I will instruct a High Street conveyancing solicitor in Greater Manchester?
There is no need to visit the lawyers office on the day of completion. Conveyancing lawyers for you will electronically transfer the completion advance to the seller's conveyancers, and once they have received this, you should be able to collect the keys from the Estate Agents and move into your new home. Usually this occurs early afternoon.
When it comes to mortgage companies such as RBS, do Greater Manchester conveyancing practitioners face an annual charge to be on the conveyancing panel?
We are not aware of any bank fees to register on their panel, although some do levy an administration charge to deal with the processing of the conveyancing panel application.
I can not work out if my lender requires a lease extension. I have called into my local Greater Manchester bank branch on a couple of occasions and was told it does not affect the mortgage offer and they will lend. My Greater Manchester conveyancing solicitor - who is on the bank conveyancing panel- called and was told they will not lend in accordance with their UK Finance Lenders’ Handbook minimum lease term requirements. I have no idea who is right.
The lawyer must follow the Council of Mortgage Lenders’ Handbook section two conditions for your lender. Unless your lawyer obtains specific confirmation in writing that the bank will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the bank to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
Due to the input of my in-laws I had a survey completed on a house in Greater Manchester before instructing solicitors. I have been advised that there is a flying freehold overhang to the house. Our surveyor has said that some banks will refuse to grant a mortgage on this type of house.
It varies from the lender to lender. Bank of Scotland has different requirements from Nationwide. If you e-mail us we can check via the relevant lender. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Greater Manchester. Conveyancing will be smoother if you use a solicitor in Greater Manchester especially if they regularly deal with such properties in Greater Manchester.
Can you offer any advice when it comes to appointing a Greater Manchester conveyancing practice to carry out our lease extension conveyancing?
When appointing a property lawyer for your lease extension (regardless if they are a Greater Manchester conveyancing practice) it is essential that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with two or three firms including non Greater Manchester conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. The following questions might be useful:
How experienced is the practice with lease extension legislation? What are the costs for lease extension conveyancing?
I acquired a 1 bedroom flat in Greater Manchester, conveyancing was carried out May 2005. Can you work out an approximate cost of a lease extension? Corresponding flats in Greater Manchester with a long lease are worth £197,000. The ground rent is £55 charged once a year. The lease runs out on 21st October 2076
With just 56 years unexpired the likely cost is going to span between £29,500 and £34,000 plus costs.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we are not able to supply the actual costs without more detailed due diligence. Do not use this information in tribunal or court proceedings. There may be additional concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first seeking the advice of a professional.