I am hoping to complete my purchase in Irlam next Tuesday. 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 mortgage company. What does the insurance need 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 requirements are not unique to conveyancing in Irlam.
I am the registered owner of a freehold house in Irlam but nevertheless pay rent, why is this and what is this?
It’s unusual for properties in Irlam and has limited impact for conveyancing in Irlam but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence post 2037 is to be extinguished.
Due to the input of my in-laws I had a survey completed on a house in Irlam prior to appointing solicitors. I have been told that there is a flying freehold overhang to the house. My surveyor advised that some lenders tend not grant a mortgage on such a house.
It varies from the lender to lender. Lloyds has different requirements for example to Nationwide. If you e-mail us we can investigate further via the relevant mortgage company. If you lender is happy to lend one our lawyers can assist as they are used to dealing with flying freeholds in Irlam. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Irlam to see if the conveyancing costs will increase in light of this.
I am hoping to put an offer on a small detached house that appears to tick a lot of boxes, at a reasonable figure which is making it all the more appealing. I have just found out that it's a leasehold rather than freehold. I am assuming that there are issues buying a house with a leasehold title in Irlam. Conveyancing solicitors have are about to be instructed. Will they explain the issues?
Most houses in Irlam are freehold and not leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. It is clear that you are purchasing in Irlam in which case you should be looking for a Irlam conveyancing practitioner and check that they are used to dealing with leasehold houses. As a matter of priority you will need to check the number of years remaining. Being a lessee you will not be entirely free to do whatever you want with the house. The lease will likely included provisions such as obtaining the freeholder’sconsent to carry out alterations. It may be necessary to pay a maintenance charge towards the upkeep of the communal areas where the property is located on an estate. Your solicitor will report to you on the legal implications.
Leasehold Conveyancing in Irlam - Sample of Questions you should ask before Purchasing
Is the freehold owned jointly by the leaseholders? How many of the leaseholders are in arrears for their maintenance charge payments? What restrictions exist in the Irlam Lease?
I have today placed an offer on an apartment in Irlam and the mortgage adviser that we are dealing with recommended his lawyer. She quoted £1000 excluding VAT and disbursements. Does this sound expensive?
You should not rely on a single estimate. One should obtain like-for-like quotes for your conveyancing in Irlam. Then select one that you trust and just as important, is on the approved list of the mortgage company that you are sourcing your mortgage from.