I am getting closer to an exchange on a house in Victoria Dock and my mum and dad have transferred the ten percent deposit to my property lawyer. I am now advised that as the deposit has not come from me my conveyancer needs to make a notification to my mortgage company. Apparently, in also acting for the mortgage company he must inform them that the balance of the purchase price is not just from me. I informed the bank about my parents' contribution when I applied for the home loan, so is it really appropriate for this now to hold matters up?
The solicitor is duty bound to clarify with mortgage company to ensure that they understand that the balance of the purchase price is not from your own funds. The solicitor can only report this to your mortgage company if you agree, failing which, your lawyer must cease to continue acting.
Are there restrictive covenants that are commonly identified during conveyancing in Victoria Dock?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the process of conveyancing in Victoria Dock. 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…’
About to purchase a new build apartment in Victoria Dock. Conveyancing is daunting 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 conveyancing.
Set out below are examples of a selection of leasehold new build enquiries that you may expect your new-build leasehold conveyancing in Victoria Dock
The Lease must contain a provision on behalf of the Vendor to pay the service charges in respect of unoccupied units in order to ensure that all services can be provided. Please confirm the Lease plans are surveyor prepared. The Vendor must covenant to keep unsold units in good repair until long leases are granted therefore. Forfeiture - bankruptcy or liquidation must not apply under this provision.
Over the last few months I have been searching for a leasehold apartment up to £195,000 and found one round the corner in Victoria Dock I like with a park and railway links in the vicinity, the downside is that it only has 49 years unexpired on the lease. There is not much else in Victoria Dock suitable, so just wondered if I would be making a mistake purchasing a short lease?
Should you require a home loan the shortness of the lease may be a potential deal breaker. Reduce the offer by the expected lease extension will cost if it has not already been discounted. If the current owner has owned the property for a minimum of 2 years you can request that they commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the existing lease with a zero ground rent applied. You should consult your conveyancing lawyer regarding this.
I am attracted to a couple of flats in Victoria Dock which have in the region of fifty years unexpired on the leases. Do I need to be concerned?
There are no two ways about it. A leasehold flat in Victoria Dock is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it adversely affects the value of the property. For most purchasers and mortgage companies, leases with under 75 years become less and less marketable. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Victoria Dock conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Victoria Dock Leasehold Conveyancing - Sample of Queries Prior to Purchasing
What is the maintenance charge and ground rent on the apartment? For most Victoria Dock leaseholds the cost for major works tend not to be wrapped into the service charges, albeit that a few managing agents in Victoria Dock require leaseholders to pay into a reserve fund and this is used to offset against larger repairs or maintenance. You will want to discover as much as possible regarding the company managing the block as they can either make life much simpler or problematic. Being a leasehold owner you are frequently at the mercy of the managing agents both financially and when it comes to day to day matters such as the upkeep of the communal areas. Don't be afraid to ask other tenants what they think of them. Finally, find out the dates that you are obliged pay the service charge to the managing agents and specifically what you get for your money.