I purchased a freehold residence in Swiss Cottage but nevertheless pay rent, why is this and what is this?
It’s unusual for properties in Swiss Cottage and has limited impact for conveyancing in Swiss Cottage 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 many centuries, but the Rent Charge Act 1977 barred the establishment of fresh 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 dispensed with completely.
The Swiss Cottage conveyancing firm that just started acting on my house acquisition in Swiss Cottage have without warning shut down. They were on acting for me because I had to have a lawyer on the Kent Reliance conveyancing panel and my family Swiss Cottage lawyer was not. I paid them money in advance. What are my options?
If you have an estate agent involved then inform them straight away so that they can let the sellers know that there may be a slight delay due to the problems encountered. Most sellers would be sympathetic and urge their lawyer to send a new set of papers to your new solicitors. You should appoint new lawyers that are on the Kent Reliance conveyancing panel and notify the lender. If you have paid over any money, it will hopefully be held by the SRA as money in an intervened firm's bank accounts is transferred to the SRA. Then, the SRA or the intervention agent looks at the intervened firm's accounts to work out who the money belongs to. To claim your money you will need to contact the SRA. If the SRA cannot return money you are owed from the firm's bank accounts, or if they can only return part of the money, you can apply to the Compensation Fund for a grant. Your new solicitors may be able to assist.
Should our conveyancer be making enquiries regarding flooding during the conveyancing in Swiss Cottage.
The risk of flooding is if increasing concern for conveyancers conducting conveyancing in Swiss Cottage. Plenty of people will buy a house in Swiss Cottage, fully expectant that at some time, it may be flooded. However, aside from the physical damage, where a property is at risk of flooding, it may be difficult to get a mortgage, satisfactory insurance cover, or dispose of the premises. There are steps that can be taken as part of the conveyancing process to forewarn the buyer.
Conveyancers are not best placed to offer advice on flood risk, however there are a various searches that may be undertaken by the buyer or by their solicitors which should give them a better appreciation of the risks in Swiss Cottage. The standard property information forms supplied to a buyer’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) incorporates a usual inquiry of the vendor to determine whether the premises has ever been flooded. In the event that flooding has previously occurred which is not revealed by the seller, then a buyer may commence a legal claim for losses as a result of such an incorrect answer. The purchaser’s conveyancers may also commission an environmental search. This will disclose if there is a recorded flood risk. If so, more detailed inquiries will need to be initiated.
Due to the guidance of my in-laws I had a survey completed on a property in Swiss Cottage ahead of instructing lawyers. I have been advised that there is a flying freehold element to the property. Our surveyor advised that some banks will refuse to grant a loan on a flying freehold property.
It varies from the lender to lender. Bank of Scotland has different instructions from Halifax. If you call us we can look into this further with the appropriate bank. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Swiss Cottage. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Swiss Cottage to see if the conveyancing costs will increase in light of this.
Can you provide any advice for leasehold conveyancing in Swiss Cottage with the aim of saving time on the sale process?
- A significant proportion of the delay in leasehold conveyancing in Swiss Cottage can be bypassed where you get in touch lawyers the minute you market your property and request that they start to put together the leasehold documentation which will be required by the buyers’ lawyers. If you have had any disputes with your freeholder or managing agents it is essential that these are resolved before the property is marketed. The purchasers and their solicitors will be nervous about purchasing a property where there is an ongoing dispute. You will have to accept that you will have to discharge any arrears of service charge or settle the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is better to present the dispute as over rather than unresolved. If you hold a share in a the Management Company, you should make sure that you have the original share certificate. Organising a replacement share certificate is often a time consuming process and frustrates many a Swiss Cottage home move. Where a new share certificate is necessary, do contact the company officers or managing agents (if relevant) for this at the earliest opportunity. Many freeholders or managing agents in Swiss Cottage levy fees for providing management packs for a leasehold premises. You or your lawyers should find out the actual amount of the charges. The management pack can be applied for on or before finding a buyer, thus reducing delays. The average time it takes to receive management information is three weeks. It is the most usual reason for delay in leasehold conveyancing in Swiss Cottage.
Despite our best efforts, we have been unsuccessful in trying to purchase the freehold in Swiss Cottage. Can this matter be resolved via the Leasehold Valuation Tribunal?
Where there is a absentee landlord or where there is dispute about what the lease extension should cost, under the Leasehold Reform, Housing and Urban Development Act 1993 it is possible to make an application to the LVT to arrive at the sum to be paid.
An example of a Lease Extension decision for a Swiss Cottage property is Raised Ground Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case affected 2 flats. The unexpired lease term was 16.83 and 16.43.