I am in the process of selling my house in Telford and the estate agent has just text me to warn that the purchasers are switching conveyancer. The reason given is that the mortgage company will only engage with solicitors on their approved list. Why would a leading lender only deal with specific law firms rather the firm that they want to appoint to handle their conveyancing in Telford ?
Mortgage companies have always had panels of law firms that can represent them, but in recent years big names such as Santander, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for many years.
Mortgage companies justify this action to a rise in fraud as the reason for the reduction – criteria have been tightened as a smaller panel is easier to oversee. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Plenty of firms are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The purchasers are not going to have any impact on this.
The owners have very brash sellers who has recommended a preliminary contract with a non-refundable deposit two thousand pounds. Is it wise to enter into such agreements?
This kind of preliminary agreement is not the norm in Telford, conveyancers are often inclined to veer clients away from them as they detract from focusing on the primary objective, namely conveyancing and if you end up having your deposit forfeited then the lawyer is left exposed. In addition, there is no guarantee that just because the vendor has entered into a lock out contract they will complete the sale with you. They may breach the contract if they are offered sufficient financial inducement to do so because a wronged buyer with the benefit of a exclusivity agreement will still be obliged show losses as a consequence of the breach and this may not equate the extra amount that your seller may obtain by breaching the agreement, no matter how morally reprehensible the behaviour is.
I am about to put an offer on a leasehold flat in Telford. The selling agents say that it is the norm for flats in Telford to have less than 75 years left on the lease. I am getting a loan with Bank of Ireland. Is this going to be a problem if the lease has 72 years remaining.
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. Bank of Ireland have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 19/9/2019 the requirements read as follows :
My wife and I are purchasing a flat in Telford. I might seem paranoid but how we can trust a solicitor? On completion day we have to send our life savings into their account. What protection do we have from them run away with our deposit?
Be assured that all money in a Solicitors client account is 100% safe, and even if your Solicitor ran off with it, the Law Society would reimburse you fully.
Can I be sure that the Telford conveyancing solicitor on the HSBC panel is any good?
When it comes to conveyancing in Telford obtaining recommendations is a sensible starting point. Before you go ahead, check if they offer a no sale no fee offer. Also, you often get what you pay for - a firm which quotes more, will often provide a better service than one which is cheap as chips. We would always suggest that you speak with the lawyer handling your conveyancing.
I currently have a mortgage with Nottingham for my property in Telford. Conveyancing was finalised some time ago. In the event that I decide to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Nottingham?
You must advise Nottingham in advance of renting your property as this is likely to be a breach of Nottingham’s mortgage conditions. It may be that Nottingham will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Nottingham directly. It should not be necessary to do this via a Nottingham conveyancing panel solicitor.
I only have 68 years remaining on my flat in Telford. I now want to extend my lease but my freeholder 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 submit an application to the County Court for for permission to dispense with the service of the initial notice. This will enable the lease to be granted an extra 90 years by the Court. You will be obliged to demonstrate that you or your lawyers have used your best endeavours to track down the landlord. On the whole a specialist may be useful to carry out a search and prepare a report which can be accepted by the court as proof that the landlord is indeed missing. It is wise to seek advice from a solicitor in relation to devolving into the landlord’s disappearance and the application to the County Court covering Telford.
I am the registered owner of a 1st floor flat in Telford, conveyancing formalities finalised half a dozen years ago. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Equivalent properties in Telford with an extended lease are worth £265,000. The average or mid-range amount of ground rent is £50 charged once a year. The lease terminates on 21st October 2094
You have 75 years remaining on your lease we estimate the premium for your lease extension to range between £8,600 and £9,800 as well as plus your own and the landlord's "reasonable" professional fees.
The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you the actual costs without more detailed investigations. Do not use the figures in tribunal or court proceedings. There are no doubt other concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. You should not take any other action placing reliance on this information before seeking the advice of a professional.