About to place an offer on a leasehold flat in Shrewsbury. The property agents tell me that it is the norm for flats in Shrewsbury to have less than 75 years left on the lease. I am getting a loan with Nationwide Building Society. Is this going to be acceptable if the lease has Seventy One years unexpired.
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. Nationwide Building Society have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 14/12/2018 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 have todaybeen informed that Action Conveyancing have closed. They conducted my conveyancing in Shrewsbury for a purchase of a leasehold apartment 18 months ago. How can I establish that my home is in my name in the name of the former proprietor?
The easiest method to see if the premises is in your name, you can carry out a search of the land registry (£3.00). You can either do this yourself or ask a law firm to do this for you. If you are not registered you can seek help from one of a number of Shrewsbury conveyancing specialists.
Just had an offer accepted on a new build apartment in Shrewsbury. Conveyancing is daunting at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build legal work.
Set out below is a sample of a selection of leasehold new build questions that you can expect your new-build leasehold conveyancing in Shrewsbury
Investor purchasers must be able to freely grant unsecured tenancies at market rents without requiring any consents. There must be mutual enforceability of lessee’s covenants. Please provide evidence that the form of Lease proposed has been approved by the Land Registry. The Landlord must covenant to assume the management if the Management Company goes into liquidation or otherwise defaults in running the management scheme.
Is it possible to change solicitor as I need to retain one who is on the Lloyds TSB Bank conveyancing panel. I hired a family conveyancing solicitor in Shrewsbury round the corner but she is not accepted by Lloyds TSB Bank
We will our best to assist in finding you a conveyancing solicitor in Shrewsbury on the Lloyds TSB Bank panel. Please note that the property lawyers that we work with do not pay us a referral fee if you instruct them and are fully regulated by the SRA who regulate all conveyancing solicitors in Shrewsbury. In utilising search facility on this page, you can scrutinise fees for conveyancing solicitors in Shrewsbury and beyond.
Having checked my lease I have discovered that there are only 68 years remaining on my flat in Shrewsbury. I now wish to extend my lease but my landlord is can not be found. What are my options?
On the basis that you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the County Court for an order to dispense with the service of the initial notice. This will mean that your lease can be extended by the Court. You will be obliged to prove that you have used your best endeavours to locate the freeholder. On the whole an enquiry agent would be useful to carry out a search and prepare an expert document to be used as evidence that the freeholder is indeed missing. It is wise to seek advice from a property lawyer both on proving the landlord’s disappearance and the application to the County Court overseeing Shrewsbury.
I inherited a 1st floor flat in Shrewsbury, conveyancing formalities finalised half a dozen years ago. Can you give me give me an indication of the likely cost of a lease extension? Corresponding properties in Shrewsbury with a long lease are worth £201,000. The average or mid-range amount of ground rent is £45 yearly. The lease terminates on 21st October 2082
You have 64 years unexpired we estimate the premium for your lease extension to be between £14,300 and £16,400 as well as professional fees.
The suggested premium range above a general guide to costs for extending a lease, but we cannot give you a more accurate figure without more comprehensive due diligence. Do not use this information in a Notice of Claim or as an informal offer. There may be additional issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward based on this information before getting professional advice.