I am about to put a bid on a leasehold flat in Skelmersdale. The selling agents say that it is standard for flats in Skelmersdale to have less than 75 years unexpired on the lease. I am expecting a mortgage with Nationwide Building Society. Will the property be mortgageable given that the lease has 70 years left.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are getting 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 13/4/2019 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.
My partner and I have organised the release of further funds on our home loan from Leeds Building Society as we wish to carry out alterations to our house in Skelmersdale. Do we need to select a bricks and mortar Skelmersdale solicitor on the Leeds Building Society conveyancing panel to deal with the paperwork?
Leeds Building Society would not normally instruct a member of their conveyancing panel to deal with such a matter. If they do require any legal work then you would need to ensure that such a lawyer was on the Leeds Building Society panel.
Planning on purchasing a flat in Skelmersdale. I have received an online quote from a licenced conveyancer, which states: "There will be no charge for dealing with the Building Society if you are obtaining a mortgage". I take this to mean that there will be no additional fee if the solicitor is on the UBS conveyancing panel. I wanted to make sure it means there will be no additional fees for dealing with the mortgage.
They are simply saying that the cost for acting for the lender is included in the fee being quoted. It is worth you checking that the Skelmersdale solicitor is on the UBS conveyancing panel.
Aldermore have agreed my home loan in principle, my offer on a apartment in Skelmersdale has been accepted, what happens next?
Your estate agent will want to know who your solicitors are (be sure the lawyers are on the lender’s approved list). Contact Aldermore or the broker and finish off any outstanding forms. Aldermore will instruct a valuer who will get in contact with the estate agent or seller to book an appointment. Once carried out (assuming no problems) it takes on average a week for the mortgage offer to be issued. Aldermore will send the offer to you and your solicitors. The legal work will then take it’s course according the nature and complexity of the conveyancing in Skelmersdale.
Do I need to take out insurance to address the risk of chancel repairs when acquiring a property in Skelmersdale?
Unless a prior acquisition of the property took place after 12 October 2013 you may assume that lawyers handling conveyancing in Skelmersdale to continue to advocate a chancel search and or chancel repair liability insurance.
I'm buying my first flat in Skelmersdale with a loan from Birmingham Midshires. The sellers refused to reduce the amount so I negotiated 6k of additionals instead. The sale representative suggested that I not inform my solicitor about this extras as it may impact my mortgage with the lender. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the builder 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 have been pointed in your direction by a couple of local estate agents in Skelmersdale to locate a solicitor using your seach tool. What’s the financial inducement for Estate Agents to offer your site rather than a competitor’s?
We don’t offer any referral fee for directing people in our direction. We thought it would be too underhand a fee as a client could think, ‘Why is the agent getting a kickback? Why aren’t I getting any benefit too?’ So we decided to step away from that.