My fiance and I are looking to purchase a flat in Chatham and have appointed a Chatham conveyancing firm. Within the past 48 hours our lawyer has sent a preliminary report and documents to look through with a view to exchanging next week. Nottingham Building Society have this afternoon contacted us to inform me that they have now hit a problem as our Chatham lawyer is not on their approved list of lawyers. Please explain?
If you are buying a property needing a mortgage it is conventional for the purchasers' solicitors to also represent the mortgage company. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your solicitor should contact your lender and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You don't have to instruct a firm on the bank's conveyancing panel as you are at liberty to use your preferred Chatham lawyers, in which case it will likely add costs, and it will likely delay the transaction as you have another set of people involved.
I own a freehold premises in Chatham but still charged rent, why is this and what is this?
It is rare for properties in Chatham and has limited impact for conveyancing in Chatham but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back many centuries, but the Rent Charge Act 1977 barred the generation of new rentcharges post 1977.
Previous rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.
Will my conveyancing lawyers need to check that the building insurance for my purchase of a house in Chatham. My lender is Bank of Ireland
Bank of Ireland have specific requirements as set out in the UK Finance Lenders’ Handbook. As of 30/4/2021, the requirements read as follows :
We are close to exchanging contracts on the sale of our property in Chatham and according to the buyers it appears that there is a risk of it being built land that was not decontaminated. Any local conveyancer would know this is not the case. It does beg the question why the buyers used a web based conveyancing firm as opposed to a conveyancing solicitor in Chatham. Having lived in Chatham for many years we know that this is a non issue. Is it a good idea to get in touch with our local Authority to obtain confirmation that the buyers are looking for.
It would appear that you have a conveyancing lawyer already. What do they say? You should enquire of your lawyer before you do anything. It is very possible that once the local authority has been informed of a potential issue it cannot be insured against (a bit like being diagnosed with a serious illness and then taking out life insurance to cover that same sickness)
I decided to have a survey completed on a house in Chatham in advance of appointing solicitors. I have been informed that there is a flying freehold element to the house. Our surveyor advised that some mortgage companies will not give a loan on such a house.
It varies from the lender to lender. Santander has different instructions for example to Nationwide. If you call us we can check via the relevant mortgage company. If you lender is happy to lend one our lawyers can assist as they are used to dealing with flying freeholds in Chatham. Conveyancing may be slightly more expensive based on your lender's requirements.
I am attracted to a two maisonettes in Chatham which have about 50 years remaining on the lease term. Should I regard a short lease as a deal breaker?
There are plenty of short leases in Chatham. The lease is a legal document that entitles you to use the property for a prescribed time frame. As a lease shortens the value of the lease deteriorates and results in it becoming more expensive to acquire a lease extension. This is why it is often a good idea to increase the term of the lease. It is often difficult to sell a property with a short lease as mortgage lenders may be unwilling to lend money on properties of this type. Lease extension can be a protracted process. We recommend you seek professional help from a solicitor and surveyor with experience in this arena.
Chatham Conveyancing for Leasehold Flats - Examples of Questions you should ask Prior to Purchasing
-
Is there a share of the freehold? How long is the Lease? Please note if it is no more than 80 years it will impact the value of the apartment. It is worth checking with your lender that they are content with residual term of the lease. A short lease means that you will most likely have to extend the lease at some point and you need to have some idea of how much this would cost. For most Chathamlease extensions you will be be obliged to have been the owner of the property for two years before you are legally able to carry out a lease extension.