I am nearing exchange of contracts for my ground floor flat in Burford and the EA has just text me to warn that the purchasers are switching solicitor. The reason given is that the mortgage company will only deal with solicitors on their conveyancing panel. On what basis would a big named lender only engage with specific solicitors rather the firm that they want to select for their conveyancing in Burford ?
Mortgage companies have always had an approved set of law firms they are content to work with, but in the past few years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for decades.
Banks point to the increase in fraud by way of justification for the reduction – criteria have been stiffened as a smaller panel is easier to maintain. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices that have been removed from panels. Some are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your buyers are unlikely to have any impact on this.
I am in a contract race with another buyer for a property in Burford. What can I do to expedite the buying process?
In a situation where the seller is applying time constraints to complete it is advisable to make sure that your conveyancer is familiar with the area as they will have local relationships and knowledge. It is even conceivable that they could have handled previousproperties in the same neighbourhood. Therefore consider using a Burford conveyancing lawyer. Second, ensure that the lawyer is on the on the approved list for your mortgage company. It is claimed that just under twenty per cent of Burford conveyancing transactions are delayed or derailed after discovering a buyer’s lawyer was not on their banks list of approved solicitors. This can often result in the transaction being frustrated by almost three weeks. It is claimed that this issue affects approximately 100,000 home moves annually. Most Burford conveyancing practices can not represent certain banks so do check at the outset.
As I am unsure how the conveyancing bit works what is the most important advice you can impart regarding purchase conveyancing in Burford?
You may not hear this from too many lawyers but conveyancing in Burford and elsewhere in England and Wales is an adversarial experience. Put another way, when it comes to conveyancing there is plenty of room for conflict between you and other parties involved in the transaction. For instance, the seller, property agent and even potentially your mortgage company. Choosing a lawyer for your conveyancing in Burford is a critical decision as your conveyancer is your adviser, and is the ONLY person in the transaction whose role it is to look after your best interests and to keep you safe.
Every so often a third party with a vested interest may try and persuade you that you should follow their advice. As an example, the selling agent may claim to be assisting by suggesting your lawyer is dragging his heels. Or your mortgage broker may advise you to do something that is contrary to your conveyancers advice. You should always trust your lawyer above all other parties when it comes to the legal transfer of property.
I had intended to instruct a conveyancing solicitor in Burford for our house move. Our broker informed us that our bank The Mortgage Works won't deal with them. Surely this is unduly restrictive?
Pre- 2008 most lenders had an appetite for risk which was higher than today. Almost all Burford conveyancing firms would have been on many mortgage company panels. The Financial Services Authority in 2010 conducted a thematic review into mortgage fraud which come to the conclusion: know the conveyancing solicitors dealt with. Consequently, lenders are increasingly seeing more information from law firms regarding their operations and their employees as well as establishing certain criteria such a completing on a minimum amount of transactions. Many Burford conveyancing firms that have been excluded from lender panels have Unblemished track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Burford is amongst the many locations where the solicitors we recommend are members of the panel for The Mortgage Works.
Just had an offer accepted on a new build flat in Burford. Conveyancing is necessary evil 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 Burford
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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 supply a car parking plan. The Landlord must covenant to assume the management if the Management Company goes into liquidation or otherwise defaults in running the management scheme. Investor purchasers must be able to freely grant unsecured tenancies at market rents without requiring any consents. Where there is an Undertaking being granted there is the risk of forfeiture of the Headlease subject to relief if one or more of the Underlessees are willing to accept the original Head Lessee’s obligations as otherwise relief will be denied to the Underlessees. The only alternatives are the Head Lessor agreeing not to forfeit the Headlease or the Head Lessee guaranteeing to the Underlessees that it will not be in breach of the Headlease.
I am a negotiator for a reputable estate agency in Burford where we have witnessed a few flat sales jeopardised due to short leases. I have received contradictory information from local Burford conveyancing firms. Please can you shed some light as to whether the vendor of a flat can start the lease extension process for the buyer?
As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser can avoid having to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the disposal of the property.
An alternative approach is to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the purchaser.
I bought a 2 bed flat in Burford, conveyancing formalities finalised 4 years ago. How much will my lease extension cost? Corresponding properties in Burford with over 90 years remaining are worth £260,000. The ground rent is £45 invoiced annually. The lease expires on 21st October 2100
With 75 years left to run we estimate the price of your lease extension to range between £8,600 and £9,800 as well as costs.
The figure above a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of comprehensive investigations. You should not use the figures in tribunal or court proceedings. There may be additional issues that need to be considered and you obviously should be as accurate as possible in your negotiations. Neither should you take any other action placing reliance on this information before getting professional advice.