I am about to put an offer on a leasehold flat in Lydiate and Melling. The selling agents advise that it is normal for flats in Lydiate and Melling to have less than 75 years unexpired on the lease. I am obtaining a loan with Nationwide Building Society. Will the property be mortgageable given that the lease has 70 years to go.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are securing a mortgage then your lender may insist that the lease be extended before competition. Nationwide Building Society have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 8/2/2019 the requirements read as follows :
Report to the issuing office if the lease term is shorter than that stated on the offer and has less than 100 years remaining. (There is no requirement to report if the lease term is lower than that stated on the offer but still has 100 years or more to run, or if the lease term is longer than that stated on the offer).
NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term is less than 125 years on a new build flat or 250 years on a new build house (does not apply to Shared Ownership)
- Starting ground rent is more than 0.1% of the property value
The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed.
Ground rents and event fees:
Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us.
I happen to be the sole recipient of my late mum's will and I have everything in my name now, including the house in Lydiate and Melling. The Lydiate and Melling property was put into my name in January. I now wish to sell up. I understand that there is a Mortgage Lenders 6 month 'rule', which means that my property ownership may be regarded the same way as if I'd bought the property in January. Do I have to wait 6 months to sell?
The CML handbook instructs conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." Technically you might be affected by that. How practical a view mortgage companies take of it, depend on the bank as this requirement primarily exists to identify the purchase and immediately sell or the quick reselling of property.
Completion of my remortgage has taken place for my property in Lydiate and Melling. Conveyancing was of an acceptable standard but I feel I should register my dissatisfaction about the lender. How do I make a complaint?
Most lenders have complaints procedures. Your first port of call should be one of the lender’s branches or the Customer Care Department at head office. Ordinarily complaints to a lender are resolved effectively and efficiently. However if you are not satisfied that the matter is not resolved you can write to Financial Ombudsman Service with full details of your complaint.
I recently had an offer accepted on an apartment in Lydiate and Melling. My mortgage broker suggested a conveyancing practitioner. I paid an advanced payment of £175. A couple of days later, the solicitor called me embarrassingly acknowledging that they were not on the Aldermore conveyancing panel. Am I right in thinking that I should be due a refund?
You should be able to recover this from the law firm if they were not on the Aldermore panel. They should have asked at the outset which lender you were obtaining a mortgage with. An important lesson to readers of this site is to check that the lawyers are on the appropriate lender panel.
The deeds to my home are lost. The lawyers who dealt with the conveyancing in Lydiate and Melling 10 years ago are no longer around. What are my options?
As long as you have a registered title the details of your proprietorship will be recorded by HMLR under a Title Number. It is easy to carry out a search at the Land Registry, identify your property and secure current copies of the Registered Entries for less than a fiver. Where the title is Leasehold then the Land Registry will also normally retain a file duplicate of the Registered Lease and again, a copy can be ordered for £20 inclusive of VAT.
My uncle has suggested that I use his lawyers for conveyancing in Lydiate and Melling. Should I find my own solicitor?
No doubt the ideal way to select a conveyancing practitioner is to seek feedback from friends or family who have actually previously instructed the firm you're considering.
Having had my offer accepted I require leasehold conveyancing in Lydiate and Melling. Before I set the wheels in motion I want to be sure as to the remaining lease term.
Assuming the lease is recorded at the land registry - and almost all are in Lydiate and Melling - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title. For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
I own a leasehold flat in Lydiate and Melling, conveyancing was carried out half a dozen years ago. Can you give me give me an indication of the likely cost of a lease extension? Equivalent flats in Lydiate and Melling with over 90 years remaining are worth £260,000. The average or mid-range amount of ground rent is £45 invoiced annually. The lease finishes on 21st October 2093
With just 74 years remaining on your lease we estimate the price of your lease extension to be between £8,600 and £9,800 as well as professional fees.
The suggested premium range above a general guide to costs for renewing a lease, but we are not able to supply a more accurate figure in the absence of comprehensive due diligence. You should not use this information in tribunal or court proceedings. There may be additional issues that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. Please do not move forward based on this information before getting professional advice.