My husband and I are hoping to purchase a property in Oakham and are in fact using a Oakham conveyancing practice. Within the past 48 hours our property lawyer has forwarded the sale agreement to be signed with a detailed report with a view to exchanging next week. Birmingham Midshires have this evening contacted us to advise us that they have now hit a problem as our Oakham lawyer is not on their approved list of lawyers. What do we do from here?
Where you are buying a property needing a mortgage it is standard for the purchasers' solicitors to also act for the mortgage company. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your property lawyer should contact your bank and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You don't have to instruct a firm on the lender’s conveyancing panel as you are at liberty to use your preferred Oakham lawyers, in which case your legal fees may increase, and it may delay matters as you are adding another lawyer into the mix.
Should my conveyancer be making enquiries regarding flooding during the conveyancing in Oakham.
Flooding is a growing risk for conveyancers conducting conveyancing in Oakham. There are those who acquire a house in Oakham, completely aware that at some time, it may suffer from flooding. However, leaving to one side the physical destruction, where a house is at risk of flooding, it may be difficult to get a mortgage, suitable insurance cover, or dispose of the premises. Steps can be carried out as part of the conveyancing process to forewarn the buyer.
Solicitors are not best placed to offer advice on flood risk, but there are a number of searches that may be undertaken by the buyer or on a buyer’s behalf which can give them a better understanding of the risks in Oakham. The conventional set of property information forms sent to a purchaser’s conveyancer (where the Conveyancing Protocol is adopted) contains a standard inquiry of the owner to discover whether the property has ever been flooded. In the event that the property has been flooded in past and is not notified by the seller, then a buyer could commence a compensation claim stemming from an inaccurate response. The purchaser’s lawyers will also conduct an enviro search. This will indicate whether there is any known flood risk. If so, more detailed inquiries will need to be carried out.
I'm purchasing my first flat in Oakham benefiting from help to buy. The builders would not budge the price so I negotiated £7000 of additionals instead. The house builders rep advised me not to tell my conveyancer about the side-deal as it will jeopardize my mortgage with the bank. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I work for a busy estate agent office in Oakham where we have witnessed a number of flat sales jeopardised as a result of leases having less than 80 years remaining. I have been given conflicting advice from local Oakham conveyancing firms. Can you shed some light as to whether the owner of a flat can commence the lease extension process for the buyer?
As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer can avoid having 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.
Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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.
I acquired a 1st floor flat in Oakham, conveyancing having been completed May 1997. How much will my lease extension cost? Equivalent flats in Oakham with an extended lease are worth £181,000. The ground rent is £55 charged once a year. The lease terminates on 21st October 2068
With just 50 years unexpired the likely cost is going to span between £32,300 and £37,400 plus legals.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we are not able to advice on a more accurate figure without more comprehensive investigations. Do not use the figures in a Notice of Claim or as an informal offer. There may be other issues that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. You should not take any other action based on this information before getting professional advice.
I have read on a number of online forums that before selecting a conveyancing lawyer they need approved by your lender. It happens to be my first home move but I have an offer in principle with Santander and I already have a family conveyancing lawyer in Oakham on standby. Does HSBC require an approved conveyancer to be selected? Does a list of panel conveyancers even exist so I can pick a conveyancing solicitor in Oakham?
You need to use a solicitor that is on the HSBC panel. The simplest thing to do is ring your chosen Oakham conveyancing solicitor to check if they are on the HSBC panel. If they are not approved you have numerous choices available to you here:
- Complete the purchase with your existing Oakham property lawyer but HSBC will undoubtedly retain a lawyer on their approved list. This will result in additional charges and probable delay.
- Get a new solicitor to conduct the conveyancing, obviously checking they are on the HSBC conveyancing panel.
- Convince your conveyancer to pull out all the stops to join the HSBC conveyancing panel.