I am the registered owner of a freehold premises in Somerset but still charged rent, why is this and what is this?
It is rare for properties in Somerset and has limited impact for conveyancing in Somerset 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 have existed for hundreds of years, but the Rent Charge Act 1977 barred the generation of new rentcharges post 1977.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence after 2037 is to be dispensed with completely.
Can you clarify what the consequences are if my solicitor is suspended from the Bank of Ireland Conveyancing panel ahead of completing my conveyancing in Somerset?
The first thing to point out is that, this is very unlikely to happen. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit for a fee.
I'm buying a new build house in Somerset with the aid of help to buy. The developers refused to reduce the price so I negotiated 6k of fixtures and fittings instead. The estate agent told me not inform my solicitor about the deal as it will put at risk my loan with the bank. Is this normal?.
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.
Due to the advice of my in-laws I had a survey completed on a property in Somerset before instructing conveyancers. I have been told that there is a flying freehold element to the house. My surveyor advised that some mortgage companies will refuse to issue a loan on such a property.
It varies from the lender to lender. Lloyds has different instructions for example to Nationwide. Should you wish to call us we can check via the appropriate bank. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Somerset. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Somerset to see if the conveyancing costs will increase in light of this.
I have been advised by three or four local selling agents in Somerset to locate a property lawyer on your site. What’s the financial incentive for Estate Agents to promote your site over and above a competitor’s?
We don’t give any financial incentive for directing people our way. We found it would be just too difficult to pay a commission as home movers will think, ‘Why is the agent getting a kickback? Why aren’t I receiving any benefit too?’ So we decided to step away from that.