I am the registered owner of a freehold property in Sharnbrook yet pay rent, why is this and what is this?
It’s unusual for properties in Sharnbrook and has limited impact for conveyancing in Sharnbrook 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 establishment of new rentcharges post 1977.
Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence post 2037 is to be extinguished.
I had intended to instruct a property lawyer in Sharnbrook for our home move. Our financial adviser has since advised us that our bank The Royal Bank of Scotland won't deal with them. Why is this not regarded as unfair competition?
Pre- 2008 most lenders had an appetite for risk which was higher than today. Almost all Sharnbrook conveyancing firms would have been on most mortgage company panels. The FSA in 2010 carried out a thematic investigation into mortgage fraud which concluded: know the conveyancing solicitors dealt with. Consequently, mortgage companies are increasingly seeing more information from law firms about their operations and the individuals who work for them and establishing certain criteria such a completing on a minimum amount of conveyancing. Many Sharnbrook conveyancing firms that have been excluded from lender panels have Unblemished track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Sharnbrook is amongst the hundreds of locations where the conveyancers showing on our search results are members of the panel for The Royal Bank of Scotland.
How does conveyancing in Sharnbrook differ for new build properties?
Most buyers of new build property in Sharnbrook come to us having been asked by the housebuilder to sign contracts and commit to the purchase even before the premises is built. This is because house builders in Sharnbrook typically acquire the land, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct property lawyers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in Sharnbrook or who has acted in the same development.
Yesterday I discovered that there is a flying freehold issue on a property I have offered on a fortnight ago in what should have been a straight forward, no chain conveyancing. Sharnbrook is the location of the property. Is there any guidance you can impart?
Flying freeholds in Sharnbrook are unusual but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Sharnbrook you would need to get your solicitor to go through the deeds diligently. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Sharnbrook may determine that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold residence.
I work for a long established estate agent office in Sharnbrook where we have experienced a number of leasehold sales put at risk due to short leases. I have received conflicting advice from local Sharnbrook conveyancing solicitors. Please can you clarify whether the seller of a flat can start the lease extension formalities for the buyer?
Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer need not have to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the disposal of the property.
Alternatively, it may be possible to agree the lease extension with the freeholder 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 garden flat in Sharnbrook, conveyancing formalities finalised November 2004. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Equivalent properties in Sharnbrook with a long lease are worth £197,000. The average or mid-range amount of ground rent is £55 charged once a year. The lease terminates on 21st October 2075
With only 55 years remaining on your lease we estimate the premium for your lease extension to be between £31,400 and £36,200 plus costs.
The figure that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. You should not use this information in tribunal or court proceedings. There are no doubt other concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not take any other action based on this information before getting professional advice.