I am getting a mortgage offer from Santander. My intention is to retain the legal services of a Licensed Conveyancer in Lymington. Does the Santander Conveyancing panel exclude conveyancers regulated by the CLC?
The Santander conveyancing panel is, like many other lenders, associated to the Council or Mortgage Lenders or Building Society Association, open to Licensed Conveyancers regulated by the CLC.
I am about to put a bid on a leasehold apartment in Lymington. The property agents say that it is standard for flats in Lymington to have less than 75 years remaining. I am expecting a mortgage with The Mortgage Works. Will the property be mortgageable given that the lease has 70 years remaining.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are obtaining a mortgage then your lender may insist that the lease be extended before competition. The Mortgage Works have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 13/2/2019 the requirements read as follows :
NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
- 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'm the only recipient of my late grandmother’s estate and I have everything in my name alone, including the my former home in Lymington. Conveyancing formalities meant that the Land Registry date was in January. I want to move. 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 house in January. Will no one buy the property for half a year?
The Council of Mortgage Lenders’ handbook instructs conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." By the strict wording you might be caught by that. many lenders would take a practical view as this obligation principally exists to pick up on the purchase and immediately sell or the wholesaling and assigning of property.
I have decided to exercise my right to buy my property in Lymington off the council. I have a mortgage agreed with Co-operative. Conveyancing is new to me. Can I proceed without a solicitor easily? I think we can but we keep being told I should use one. Any advice?
It is not advisable to proceed with a house purchase without a solicitor. The council's solicitor are not acting for you. You need a solicitor for a number reasons. One of which is to verify what plans the Council have for repairs and refurbishment for the next five years. Many leaseholders have been stung for contributions of thousands of pounds. In any event, if you are getting a mortgage with Co-operative, you will need to appoint a solicitor on the Co-operative conveyancing panel.
I currently have a mortgage with Principality for my property in Lymington. Conveyancing was finalised some time ago. If I am intending to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Principality?
Your original mortgage agreement with Principality will provide that you need their approval in advance of letting out your property as this is likely to be a breach of Principality’s mortgage conditions. In many cases banks or building societies will permit you to let out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Principality directly. It should not be necessary to do this via a Principality conveyancing panel lawyer.
Am I best advised to choose a Lymington conveyancing solicitor in close proximity to the house I am buying? An old friend can deal with the legal formalities but they are based a couple of hundredmiles drive away.
The benefit of a high street Lymington conveyancing firm is that you can attend the office to execute paperwork, deliver your identification documents and pester them if necessary. Having local Lymington know how is a bonus. That being said nothing is more important than finding someone that will do a good and efficient job. If if people you trust instructed your friend and the majority were content that must trump using an unknown Lymington conveyancing lawyer solely due to them being round the corner.
What are the frequently found defects that you see in leases for Lymington properties?
There is nothing unique about leasehold conveyancing in Lymington. Most leases are drafted differently and legal mistakes in the legal wording can result in certain provisions are wrong. For example, if your lease is missing any of the following, it could be defective:
Service charge per centages that don't add up correctly leaving a shortfall Clauses dealing with recovering service charges for expenditure on the building or common parts.
You may encounter a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Norwich and Peterborough Building Society, and Nottingham Building Society all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to provide security, forcing the buyer to withdraw.
I invested in buying a ground floor flat in Lymington, conveyancing having been completed 4 years ago. Can you please calculate a probable premium for a statutory lease extension? Corresponding properties in Lymington with an extended lease are worth £170,000. The ground rent is £50 per annum. The lease finishes on 21st October 2097
With 78 years left to run we estimate the premium for your lease extension to be between £7,600 and £8,800 plus legals.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we are not able to supply the actual costs without more comprehensive investigations. You should not use the figures in tribunal or court proceedings. There are no doubt other concerns that need to be considered and you obviously should be as accurate as possible in your negotiations. Neither should you take any other action based on this information without first seeking the advice of a professional.