About to place a bid on a leasehold property in Winchelsea. The selling agents tell me that it is the norm for flats in Winchelsea to have less than 75 years remaining. I am taking out a loan with Chelsea Building Society. Is this going to be acceptable if the lease has Seventy One years remaining.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are securing a mortgage then your lender may insist that the lease be extended before competition. Chelsea Building Society have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 16/5/2022 the requirements read as follows :
My bid for a property was accepted at auction in Winchelsea. Conveyancing is needed. What are my next steps?
Having for in every practical sense signed on the dotted line you now have to find a conveyancing lawyer as a matter of urgency as you are faced with a pending deadline in which to complete the purchase. Every auction property should have an associated auction set of papers. This will include most,if not all of the documents that your lawyer will need. Where you are dealing with leasehold premises the conveyancing pack should include a copy of the lease, management information and a sellers leasehold information form and other conveyancing documentation specific to a leasehold property. You should hand this to your appointed conveyancing solicitor ASAP. You also need to ensure that that you have the requisite funding in place to complete the transaction on the set completion date.
We expect to receive a OIP from Kent Reliance this week so we know how much we could potentially offer as otherwise we are dependent on web based calculators (which aren't taking into account credit checks etc). Do Kent Reliance recommend any Winchelsea solicitors on the Kent Reliance conveyancing panel, or is it better to go independently?
You will need to appoint Winchelsea solicitors independently although you'll need to choose one on the Kent Reliance conveyancing panel. The solicitor represents both you and Kent Reliance through the process.
I can not fathom if my mortgage offer obliges me to make sure the lease term for the flat is extended prior to the completion date. I have called my Winchelsea bank branch on a couple of occasions and was told it does not impact the mortgage offer and they will lend. My Winchelsea conveyancing solicitor - who is on the bank conveyancing panel- called to say that they will not lend in accordance with their specific requirements. Who do I believe?
Provided that the solicitor is on the mortgage company panel, she or he must comply with the Council of Mortgage Lenders’ Handbook conditions for the lender. Unless your lawyer obtains specific confirmation in writing that the mortgage company will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the mortgage company to contact your lawyer in writing confirming that they will accept the number of years remaining.
Due to the input of my in-laws I had a survey completed on a property in Winchelsea in advance of instructing conveyancers. I have been advised that there is a flying freehold element to the property. My surveyor advised that some banks will not give a loan on this type of property.
It depends who your proposed lender is. HSBC has different requirements from Nationwide. Should you wish to call us we can look into this further with 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 Winchelsea. Conveyancing will be smoother if you use a solicitor in Winchelsea especially if they regularly deal with such properties in Winchelsea.
Having had my offer accepted I require leasehold conveyancing in Winchelsea. Before I get started I want to be sure as to the unexpired term of the lease.
If the lease is recorded at the land registry - and almost all are in Winchelsea - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title. For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
Leasehold Conveyancing in Winchelsea - Examples of Queries before buying
Make sure you find out if the the lease contains any onerous restrictions in the lease. By way of example plenty of leases prohibit pets being allowed in certain buildings in Winchelsea. If you like the apartmentin Winchelsea but your dog can’t live with you then you will be presented with a difficult compromise. This information is helpful as a) areas can result in problems for the building as the communal areas may start to deteriorate if repairs are not paid for b) if the tenants have a dispute with the running of the building you will wish to know about it
We own a leasehold flat in Winchelsea. Conveyancing was finalised in five years ago. I have been told that I should not allow the lease length fall too low. Is this right?
Winchelsea leasehold properties are for a prescribed period - normally ninety nine years when they are first granted. However a significant flats in Winchelsea were constructed or converted 35 or more years ago and so these leases now have under 80 years remaining. That may seem like a long time however Banks, Building Societies and other mortgage companies generally need leases to have at least 75 years remaining to adequate security. This means that when you come to sell the property you will need a lease extension if you are approaching seventy five years. To optimize the marketability of your property you should be thinking about whether or not to extend your lease long before you come to sell it. Please note that there are advantages to doing so before the lease reaches even eighty years as when the lease falls below 80 years the premium you have to pay to extend starts to escalate.