Having sold my house in Watton last May yet the purchaser is whats apping daily complaining that their conveyancer is waiting to hear from mine. What should have happened following completion?
Following your sale your solicitor should forward the transfer documentation and all additional paperwork to the purchaser's solicitors. Where relevant, your conveyancer should also confirm that the home loan has been repaid to the purchasers solicitors. There are no post completion steps unique to conveyancing in Watton.
About to place an offer on a leasehold property in Watton. The property agents tell me that it is normal for flats in Watton to have less than 75 years remaining. I am expecting a mortgage with The Mortgage Works. Is this going to be acceptable if the lease has Seventy One years unexpired.
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. The Mortgage Works have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 13/5/2024 the requirements read as follows :
Where the unexpired lease term is different to that recorded on the mortgage offer, the following clarifies if we need to be informed:
Second hand property:
- If the unexpired lease term on the offer is 85 years or more - only advise us if the actual lease term is less than 85 years
- if the unexpired lease term on the offer is less than 85 years – advise us if the actual lease term is different than reported
- For equity share applications - advise us if the actual lease term is different than reported on the offer
New build property:
- If the unexpired lease term stated on the offer is 125 years (flat) / 250 years (house) or more - only advise us if the actual lease term is less than 125 years (flat) / 250 years (house)
- For equity share applications - always advise us if the actual lease term is different than reported on the offer
Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below.
SECOND HAND PROPERTIES
Unacceptable - advise Issuing Office (Will be declined):
- Unexpired lease term less than 70 years
- Less than 30 years remaining at the end of the mortgage term
- Ground Rent greater than 0.5% of the property value
- Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more
- Ground Rent is compounded RPI
- Ground Rent review period less than or equal to 5 years
Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- Unexpired lease term is 70 to 85 years
- Ground Rent greater than 0.1% and less than or equal to 0.5% of the property value
- Ground Rent escalation is linked to any indices greater than RPI
- Ground Rent escalation is linked to the value of the building*
- Ground Rent review period is greater than 5 and less than 10 years
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 1.0% of property value p/a (please provide details of what the charges cover)
- Anything that appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Issuing Office):
- Unexpired lease term greater than 85 years
- Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than or equal to 10 years
- Ground Rent escalation less than or equal to RPI
NEW BUILD PROPERTIES (includes office conversions)
Unacceptable - advise Issuing Office (will be declined):
- Unexpired lease term less than 125 years on a new build flat or less than 250 years on a new build house
- Any lease which is subject to a ground rent (or annual rent) being charged which is more than on a peppercorn basis
- Any lease which is subject to a ground rent (or annual rent) being reviewed and altered on any review basis or methodology
Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 1.0% of property value p/a (please provide details of what the charges cover)
- Anything else appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Issuing Office):
- Unexpired lease term greater than or equal to 125 years on a new build flat or greater than or equal to 250 years on a new build house
- A lease subject to a peppercorn ground rent (annual rent) charges
For the avoidance of doubt, any new build properties completed but not sold pre 30 June 2022 will only be acceptable if the lease conforms to the above guidance
* Where the Ground Rent escalation is linked to the value of the building, please provide the following:
- How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property?
- The current valuation and Ground Rent for each unit
- What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned?
- What is the right of appeal? And is this a documented process within the lease?
- Who bears the cost of the valuation (and appeal) process?
- Confirmation the review period is not less than twenty years
LEASE EXTENSIONS
We require all lease extensions to be completed under the Leasehold Reform Housing and Urban Development Act 1993 and to meet the above criteria as a minimum. Where you become aware that it does not meet these requirements, please refer to the Issuing Office
When it comes to lenders such as Virgin Money, do Watton property lawyers face an annual charge to be on the conveyancing panel?
We are unaware of any mortgage company fees to be on their list of approved firms, although some do levy an administration charge to deal with the processing of the conveyancing panel submission.
My wife and I are in the process of viewing houses in Watton and I am now considering a potential offer. Should I already have a solicitor in place at this stage? I am planning to take a home loan with HSBC.
It would be advisable to commence your search sooner rather than later. Once you decide who you want to use and once your offer is accepted you can instruct them to work for you and pass their details on to the EA. Given that you are getting a mortgage with HSBC, make sure you remember to check that your lawyer is on the HSBC conveyancing panel.
I have finally had an offer on a flat in Watton accepted, the owners do however have a connected purchase. The sellers have placed an offer on on an apartment, but it’s not yet tied up, and have viewings of other properties booked. I have instructed a local conveyancing solicitor in Watton. What should be my next step? At what stage do I apply for the mortgage with Aldermore?
It is normal to have anxieties where there is a chain as you are unlikely to want to incur costs prematurely (home loan application is in the region of one thousand pounds, then valuation, Watton conveyancing search charges, etc). First, you must check that your solicitor is on the Aldermore conveyancing panel. Concerning the subsequent steps this very much depends on the uniqueness of your transaction, desire for this property and on the state of the market. In a hot market the majority of buyers will apply for a home loan with Aldermore and arrange for the valuation and only if it was satisfactory would they pay their solicitor to press on with searches.
How does conveyancing in Watton differ for new build properties?
Most buyers of new build property in Watton approach us having been asked by the housebuilder to exchange contracts and commit to the purchase even before the residence is built. This is because developers in Watton usually purchase the site, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct property lawyers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are accustomed to new build conveyancing in Watton or who has acted in the same development.
Taking into account that I am about to part with over three hundred thousand on a terraced house in Watton I wish to have a conversation with the conveyancer regarding thehome move prior to appointing the firm. Is this something that you can arrange?
This is something that we encourage - it is our preference to talk to you we do not take any clients on without you liaising with the lawyer who will be conducting your property ownership legalities in Watton.There is no ‘factory style conveyancing’ - every client is unique person, not a file number. The solicitors that we put you in touch with believe that the fees you are quoted for your conveyancing in Watton should be the figure that you end up paying.
In surfing the web for the phrase cheap conveyancing in Watton it reveals numerous property lawyersin the vicinity. With so much choice what is the best way to find the right property lawyer for the sale of my house?
The ideal way of finding a suitable conveyancer is through a trusted referral, so ask colleagues and family who have bought a property in Watton or the local estate agent or mortgage broker. Costs for conveyancing in Watton differ, so it's a good idea to obtain a minimum of three estimates from varying types of property lawyers. Dont forget to clarify that the charges are assured not to increase.