About to place a bid on a leasehold flat in Tetbury. The selling agents say that it is normal for flats in Tetbury 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 remaining.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are obtaining 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 20/4/2019 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.
Are there restrictive covenants that are commonly picked up as part of conveyancing in Tetbury?
Restrictive covenants can be picked up when reviewing land registry title as part of the process of conveyancing in Tetbury. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
The estate agent has sent us the confirmation of our purchase of a new build apartment in Tetbury. Conveyancing is a frightening process at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build legal work.
Here is a sample of a selection of leasehold new build enquiries that you should expect your new-build leasehold conveyancing in Tetbury
Where service of notices and proceedings can be at the property demised please confirm that this can be amended to include simultaneous services at the Lessees’ solicitors’ offices where the Lessee from time to time is not resident in the UK - such solicitors may be varied by notice in writing to the Landlord from time to time but otherwise will be as previously specified. Has the Lease plan been approved by the Land Registry and if not when will they be lodged for this purpose? Please supply a car parking plan. Will control of the Management Company (if any) be handed over to purchasers on completion of the last sale or earlier? Investor purchasers must be able to freely grant unsecured tenancies at market rents without requiring any consents.
Due to the input of my in-laws I had a survey completed on a property in Tetbury prior to appointing solicitors. I have been advised that there is a flying freehold aspect to the house. My surveyor advised that some mortgage companies will not give a loan on such a premises.
It varies from the lender to lender. Bank of Scotland has different instructions for example to Halifax. Should you wish to call us we can check via the relevant lender. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Tetbury. Conveyancing will be smoother if you use a solicitor in Tetbury especially if they are accustomed to such properties in Tetbury.
Do I need to be wary by brokers that I am dealing with are recommending a national conveyancing firm rather than a High Street Tetbury conveyancing firm?
As is the case with many service providers, often recommendations from relatives can be very helpful. Yet there are many people with a keen interest in a conveyancing transaction; estate agents, financial adviser and lenders may suggest solicitors to appoint. On occasion the conveyancers might be known to one of the organisations as being good in their field, but sometimes there might be a commercial relationship behind the endorsement. You are free to select your preferred conveyancer. You need to be aware that some mortgage providers specify a panel list of lawyers you must use for the lender related work in your house move.