All was ready to complete my purchase in Holsworthy next Thursday. I have now been asked to send a copy of my building insurance schedule by my solicitor as he says that he has to check this in his capacity as lawyer for the bank. What risks does the mortgage company expect the insurance to cover?

Any lawyer on acting for lenders would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s UK Finance Lenders’ Handbook requirements. These obligations are not specific to conveyancing in Holsworthy.

Why do I have to pay up front for my conveyancing in Holsworthy?

If you are buying a property in Holsworthy your solicitor will request that you to provide them with monies to cover the search fees. This will be the total of the cost of the Local Authority Search. When the down payment is payable against the purchase price then this will be required immediately in advance of contracts are exchanged. The final balance that is due should be sent to your lawyer shortly before completion.

Over the last few months I have been searching for a ground for flat up to £235,500 and found one round the corner in Holsworthy I like with a park and railway links nearby, however it only has 49 remaining years left on the lease. I can't really find anything else in Holsworthy for this price, so just wondered if I would be making a mistake buying a lease with such few years left?

Should you require a home loan the shortness of the lease may be a potential deal breaker. Discount the offer by the amount the lease extension will cost if it has not already been discounted. If the existing proprietor has owned the premises for a minimum of twenty four months you could ask them to start the process of the extension and pass it to you. An additional ninety years can be extended on to the existing lease term and have £0 ground rent by law. You should consult your conveyancing lawyer concerning this matter.

I am a negotiator for a reputable estate agency in Holsworthy where we have witnessed a number of flat sales jeopardised due to leases having less than 80 years remaining. I have received contradictory information from local Holsworthy conveyancing firms. Can you shed some light as to whether the vendor of a flat can initiate the lease extension process for the buyer?

Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer need not have to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or at the same time as 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.

Holsworthy Conveyancing for Leasehold Flats - A selection of Queries before buying

Plenty Holsworthy leasehold properties will have a service charge for the upkeep of the building levied on behalf of the landlord. Should you purchase the flat you will have to pay this amount, normally quarterly accross the year. This can vary from a few hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a rentcharge to be met annual, normally this is not a significant amount, say around £50-£100 but you need to check it because on occasion it could be prohibitively expensive. Are there any major works in the near future that will increase the service charges? Is the freehold owned collectively by the tenants?

Why do Holsworthy conveyancing fees are more expensive for leasehold and freehold properties?

Inevitably there is increased work necessary in leasehold conveyancing. Holsworthy has many leasehold properties. There is more paperwork involved in the purchase: for example, the lease and leasehold information (including up to date service charge, ground rent and buildings insurance details) obtained from the freeholder or managing agents. There are strict criteria that the lease must meet in order to be acceptable to a mortgage company. If it does not meet these requirements, the lease must be amended, which can involve additional expense for the seller.