My lawyer has identified a a legal deficiency with the lease for the property we are buying in Hartfield. The other side have suggested defective title insurance as a workaround. We are content with insurance and will pay for it. Our conveyancer has advised that he must check that the mortgage company is happy with this solution. Who is the client here, us or the bank?
Notwithstanding that you have a mortgage offer from the mortgage company does not mean to say that the property will meet their specifications for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook specifications. You and the mortgage company are the client. The appropriate lender conditions have to be complied with.
Are the Hartfield conveyancing solicitors identified as being on the Virgin Money conveyancing panel, together with their details provided by Virgin Money?
Hartfield conveyancing firms themselves provide us confirmation that they are on the Virgin Money conveyancing panel as opposed to being supplied with a list from Virgin Money directly.
I have been on the look out for a leasehold apartment up to £305k and identified one close by in Hartfield I like with open areas and railway links in the vicinity, the downside is that it's only got 61 remaining years left on the lease. There is not much else in Hartfield in this price bracket, so just wondered if I would be making a grave error acquiring a lease with such few years left?
Should you require a mortgage the remaining unexpired lease term will be an issue. Discount the price by the expected lease extension will cost if not already taken into account. If the existing owner has owned the property for at least 2 years you could ask them to commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the current lease term with a zero ground rent applied. You should consult your conveyancing solicitor concerning this.
I have been recommended by three or four local estate agents in Hartfield to select a property lawyer on your site. Is there a financial inducement for Estate Agents to promote your services rather than alternative conveyancing organisations?
We refuse to offer any commission for directing people in our direction. We thought it would be too underhand to pay a commission because a client could think, ‘Why is the agent getting a kickback? Why am I not getting any benefit too?’ We would prefer to grow our business on genuine recommendations.
I today plan to offer on a house that seems to tick a lot of boxes, at a reasonable price which is making it all the more appealing. I have since found out that it's a leasehold rather than freehold. I am assuming that there are issues purchasing a leasehold house in Hartfield. Conveyancing solicitors have are soon to be appointed. Will they explain the issues?
Most houses in Hartfield are freehold and not leasehold. This is one of the situations where having a local solicitor who is familiar with the area who can help the conveyancing process. It is clear that you are purchasing in Hartfield so you should seriously consider looking for a Hartfield conveyancing solicitor and be sure that they are used to dealing with leasehold houses. First you will need to check the number of years remaining. Being a leaseholder you will not be at liberty to do whatever you want to the property. The lease will likely included provisions such as requiring the freeholder’spermission to conduct alterations. You may also be required to pay a service charge towards the upkeep of the communal areas where the property is part of an estate. Your solicitor should appraise you on the various issues.
Leasehold Conveyancing in Hartfield - A selection of Questions you should ask Prior to buying
Where a Hartfield lease has less than 80 years it will have adverse implications on the marketability of the property. It is worth checking with your mortgage company that they are happy with residual term of the lease. A short lease means that you will most likely have to extend the lease at some point and it is worth finding out how much this would cost. Remember, in most cases you will be be obliged to have owned the residence for a couple of years in order to be eligible to carry out a lease extension. It would be sensible to find out as much as possible concerning the managing agents as they will affect your use and enjoyment of the property. Being a leasehold owner you are often in the clutches of the managing agents from a financial perspective and when it comes to practical issues like the upkeep of the common parts. Enquire of other tenants what they think of their service. On a final note, investigate as to the dates that the maintenance charges are due to the relevant party and specifically what you get for your money. Is the freehold reversion owned jointly by the tenants?