Our solicitor has discovered a defect with the lease for the flat we are purchasing in Hull West. The seller’s lawyers have put forward defective title insurance as a solution. We are content with insurance and will cover the costs. Our lawyer says that he must be satisfied that the bank is content with this solution. Are we the client or is the lender?
Even though you have a mortgage offer from the mortgage company does not mean to say that the property will meet their requirements for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook requirements. You and the bank are the client. The appropriate lender requirements must be adhered to.
The estate agent has sent us the confirmation of our purchase of a new build apartment in Hull West. Conveyancing is a frightening process at the best of times but I have never purchased a new build flat before. Can you give me some examples of some of the questions asked in new build conveyancing.
Set out below is a sample of a few leasehold new build questions that you can expect your new-build leasehold conveyancing in Hull West
Will control of the Management Company (if any) be handed over to purchasers on completion of the last sale or earlier? Forfeiture - bankruptcy or liquidation must not apply under this provision. Where there is an Undertaking being granted there is the risk of forfeiture of the Headlease subject to relief if one or more of the Underlessees are willing to accept the original Head Lessee’s obligations as otherwise relief will be denied to the Underlessees. The only alternatives are the Head Lessor agreeing not to forfeit the Headlease or the Head Lessee guaranteeing to the Underlessees that it will not be in breach of the Headlease. Where service of notices and proceedings can be at the property demised please confirm that this can be amended to include simultaneous services at the Lessees’ solicitors’ offices where the Lessee from time to time is not resident in the UK - such solicitors may be varied by notice in writing to the Landlord from time to time but otherwise will be as previously specified. Will the freehold then be transferred for a nominal consideration (not exceeding £100) to the Management Company?
Over the last few months I have been searching for a flat up to £195,000 and identified one close by in Hull West I like with amenity areas and station in the vicinity, however it's only got 51 remaining years left on the lease. I can't really find anything else in Hull West in this price bracket, so just wondered if I would be making a mistake acquiring a lease with such few years left?
If you require a home loan the shortness of the lease may be problematic. Reduce the price by the anticipated lease extension will cost if it has not already been discounted. If the existing proprietor has owned the property for a minimum of 2 years 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 with a zero ground rent applied. You should speak to your conveyancing lawyer regarding this.
In what way can the Landlord & Tenant Act 1954 affect my business property in Hull West and how can your lawyers assist?
The particular law that you refer to affords protection to commercial lessees, granting the legal entitlement to apply to court for a new tenancy and continue in occupation when the lease comes to an end. There are limited grounds where a landlord can refrain from granting a lease renewal and the rules are complicated. Fees are different for commercial conveyancing. Hull West is one of the numerous locations in which our lawyers have offices
I am looking at a two apartments in Hull West which have in the region of fifty years remaining on the leases. Do I need to be concerned?
There are plenty of short leases in Hull West. The lease is a legal document that entitles you to use the property for a prescribed time frame. As a lease shortens the saleability of the lease deteriorates and results in it becoming more costly to acquire a lease extension. This is why it is often a good idea to extend the lease term. It is often difficulties arise selling premises with a short lease because mortgage lenders may be reluctant to lend money on such properties. Lease extension can be a difficult process. We advise that you seek professional assistance from a conveyancer and surveyor with experience in this arena.
I invested in buying a basement flat in Hull West, conveyancing formalities finalised 8 years ago. Can you let me have an estimated range of the fair premium for a lease extension? Similar properties in Hull West with over 90 years remaining are worth £265,000. The ground rent is £50 charged once a year. The lease runs out on 21st October 2097
With just 76 years unexpired we estimate the premium for your lease extension to range between £8,600 and £9,800 plus costs.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you the actual costs in the absence of detailed investigations. You should not use this information in tribunal or court proceedings. There may be additional issues that need to be considered and clearly you should be as accurate as possible in your negotiations. Please do not take any other action placing reliance on this information without first getting professional advice.