My solicitor has identified a defect with the lease for the property we are buying in Stepney. The seller’s lawyers have offered title insurance as a solution. We are happy with insurance and will cover the costs. Our solicitor says that he must ensure that the mortgage company is content with this solution. Who is the client here, us or the mortgage company ?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the bank are the client. Your conveyancing practitioner must comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the lender can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your conveyancer will have no choice but to discontinue acting for you.
I own a freehold property in Stepney yet charged rent, why is this and what is this?
It is rare for properties in Stepney and has limited impact for conveyancing in Stepney 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 many centuries, but the Rent Charge Act 1977 barred the creation of new rentcharges from 1977 onwards.
Previous rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 will be dispensed with completely.
Will my lawyer be asking questions regarding flooding during the conveyancing in Stepney.
The risk of flooding is if increasing concern for lawyers dealing with homes in Stepney. There are those who purchase a house in Stepney, fully 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 obtain a mortgage, adequate insurance cover, or dispose of the property. There are steps that can be taken during the course of a house purchase to forewarn the purchaser.
Solicitors are not best placed to offer advice on flood risk, however there are a number of checks that may be undertaken by the buyer or on a buyer’s behalf which will give them a better understanding of the risks in Stepney. The conventional set of completed inquiry forms supplied to a buyer’s lawyer (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a usual inquiry of the seller to find out whether the premises has suffered from flooding. If the property has been flooded in past and is not revealed by the vendor, then a buyer could issue a compensation claim as a result of such an incorrect reply. A buyer’s conveyancers may also commission an enviro report. This will higlight whether there is a recorded flood risk. If so, additional investigations will need to be conducted.
Due to the input of my in-laws I had a survey completed on a property in Stepney in advance of retaining lawyers. I have been advised that there is a flying freehold overhang to the property. My surveyor has said that some banks may refuse to grant a mortgage on such a house.
It depends who your proposed lender is. Bank of Scotland has different instructions for example to Nationwide. Should you wish to telephone us we can check with the relevant bank. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Stepney. Conveyancing may be slightly more expensive based on your lender's requirements.
There are only Seventy years left on my lease in Stepney. I am keen to extend my lease but my freeholder is missing. What are my options?
On the basis that you meet the appropriate requirements, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for an order to dispense with the service of the initial notice. This will enable the lease to be extended by the Court. However, you will be required to prove that you have done all that could be expected to find the freeholder. In some cases an enquiry agent would be useful to try and locate and prepare a report which can be accepted by the court as proof that the landlord is indeed missing. It is advisable to get professional help from a solicitor both on devolving into the landlord’s absence and the vesting order request to the County Court overseeing Stepney.
I have attempted and failed to negotiate with my landlord to extend my lease without success. Can the Leasehold Valuation Tribunal decide on such matters? Can you recommend a Stepney conveyancing firm to act on my behalf?
Most definitely. We are happy to put you in touch with a Stepney conveyancing firm who can help.
An example of a Freehold Enfranchisement matter before the tribunal for a Stepney residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The remaining number of years on the lease was 101.61 years.