Me and my partner are planning to purchase a 1 bedroom apartment in Ashton with a mortgage. We like our Ashton lawyer, but the bank says he's not on their "panel". We have to appoint one of the mortgage company panel solicitors or keep our Ashton solicitor as well as pay for one of their panel lawyers to represent them. This feels very unfair; can we not insist that the mortgage company use our Ashton solicitor ?
Unfortunately,no. The mortgage offered to you is subject to its terms and conditions, one of which will be that lawyers will on the bank’s conveyancing panel. Until recently, most lenders had large numbers of law firms on their panels: a borrower could choose one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. Another option that might be available is for your Ashton conveyancing lawyer to apply to be on the conveyancing panel.
About to place a bid on a leasehold property in Ashton. The property agents say that it is the norm for flats in Ashton to have less than 75 years left on the lease. I am getting a loan with Nationwide Building Society. Will the property be mortgageable given that the lease has 72 years to go.
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. Nationwide Building Society have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 19/1/2022 the requirements read as follows :
- There must be at least 30 years remaining at the end of the mortgage term (regardless of the length of lease at the start).
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 55 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 is 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 55 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 0.5% 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 (does not apply to Shared Ownership)
- Starting Ground Rent greater than 0.1% of the property value
- Ground Rent review period less than or equal to every 5 years
- 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
Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- 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 0.5% 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
- Starting Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than 5 years
- Ground Rent escalation less than or equal to RPI
* 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.
What can a local search tell me regarding the property I am buying in Ashton?
Ashton conveyancing often starts with the ordering local authority searches directly from your local Authority or via a personal search organisations such as Searchflow The local search plays an important role in most Ashton conveyancing purchase; that is if you don’t want any unpleasant once you have moved into your property. The search will reveal information on, amongst other things, details on planning applications applicable to the premises (whether granted or refused), building control history, any enforcement action, restrictions on permitted development, nearby road schemes, contaminated land and radon gas; in all a total of thirteen topic headings.
My wife and I have a terraced Victorian property in Ashton. Conveyancing practitioner represented me and Platform Home Loans Ltd. I did a free Land Registry search last week and I saw a couple of entries: one for freehold, another for leasehold under the exact same property. I'd like to know for sure, how can I find out??
You need to assess the Freehold register you have again and check the Charges Register for mention of a lease. The best way to be sure that you are also the registered proprietor of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Ashton and other areas of the country and poses no real issues for owners other than when they remortgage they have to account for both freehold and leasehold interests when dealing with buyers. You can also check the position with the conveyancing practitioner who completed the work.
Do you have any advice for leasehold conveyancing in Ashton from the point of view of expediting the sale process?
- Much of the frustration in leasehold conveyancing in Ashton can be bypassed where you get in touch lawyers as soon as your agents start marketing the property and ask them to collate the leasehold documentation which will be required by the buyers’ representatives. You believe that you know the number of years remaining on your lease but it would be advisable double-check via your solicitors. A purchaser's conveyancer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the lease term is less than 80 years. It is therefore essential at an early stage that you identify whether the lease term for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale. If you have carried out any alterations to the premises would they have required Landlord’s approval? In particular have you laid down wooden flooring? Ashton leases often stipulate that internal structural alterations or installing wooden flooring necessitate a licence from the Landlord consenting to such works. If you fail to have the paperwork in place do not contact the landlord without checking with your lawyer before hand. If you have the benefit of shareholding in the freehold, you should ensure that you hold the original share certificate. Obtaining a new share certificate can be a time consuming process and delays many a Ashton home move. If a duplicate share is needed, you should approach the company director and secretary or managing agents (where applicable) for this sooner rather than later.
Leasehold Conveyancing in Ashton - Sample of Questions you should ask Prior to Purchasing
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It is important to be aware whether redecorating or some other major work is anticipated that will be shared between the tenants and could well materially increase the the maintenance costs or result in a specific payment. It would be wise to discover as much as you can regarding the managing agents as they will either make living at the property much easier or uncomfortable. As the proprietor of a leasehold property you will be in the clutches of the managing agents both financially and when it comes to day to day matters like the cleanliness of the common parts. Ask prospective neighbours whether they are happy with their service. Finally, investigate as to the dates that the service fees are due to the relevant party and specifically how they are spending that money. How much is the ground rent and service charge?
As a tenant I am liable for a maintenance contribution for my flat in Ashton. Due to redundancy and personal issues I fell behind with remittance. The managing agents agreed a clearance schedule but there remains a couple of currently outstanding.
I am under pressure to dispose of the property and I am worried this may jeopardize the sale if I have to settle the arrears in advance. I'd like to sell up and then pay them back with the proceeds - is this achievable?
Your conveyancer should be in a position to negotiate with the management company, and agree with them whether or not they would accept settlement out of the completion monies. Here is an example of why it is sensible to select a solicitor in Ashton as they may well have an established relationship with the management company.