My partner and I are approaching an exchange on a flat in Cotham and my mum and dad have sent the ten percent deposit to my lawyer. I am now told that as the deposit has been sent from someone other than me my conveyancing practitioner needs to disclose this to my lender. I am advised that, in also acting for the mortgage company he must advise them that the balance of the purchase price is not just from me. I advised the bank about my parents' contribution when I applied for the mortgage, so is it really appropriate for this now to delay the deal?
Your conveyancer is obliged to check with the bank to make sure that they understand that the balance of the purchase price is not from your own funds. Your solicitor can only disclose this to your lender if you agree, failing which, your lawyer must cease to continue acting.
I'm buying my first flat in Cotham with a loan from Britannia. The developers would not move on the price so I negotiated five thousand pounds worth of fixtures and fittings instead. The property agent advised me not to tell my lawyer about the side-deal as it could put at risk my loan with the lender. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I have been on the look out for a flat up to £245,000 and identified one near me in Cotham I like with open areas and station in the vicinity, the downside is that it's only got 52 years unexpired on the lease. There is not much else in Cotham suitable, so just wondered if I would be making a mistake buying a short lease?
Should you need a mortgage the remaining unexpired lease term may be an issue. Discount the offer by the expected lease extension will cost if it has not already been discounted. If the existing proprietor has owned the premises for at least twenty four months you may ask them to commence the lease extension formalities and then assign it to you. You can add 90 years to the existing lease term and have £0 ground rent by law. You should consult your conveyancing solicitor regarding this matter.
I have been pointed in your direction by numerous property agents in Cotham to select a property lawyer using your seach tool. Is there a financial incentive for Estate Agents to offer your services over a competitor’s?
We don’t offer any commission for sending work our way. We found it would be just too difficult a fee as a client could think, ‘Why is the agent getting a kickback? Why aren’t I getting any benefit too?’ We would prefer to grow our business on genuine recommendations.
I have just started marketing my 2 bed apartment in Cotham. Conveyancing is yet to be initiated, but I have just received a yearly maintenance charge demand – what should I do?
The sensible thing to do is pay the maintenance contribution as you normally would because all ground rent and service invoices should be allotted as part of the financial calculations for completion monies, so you should recover the relevant percentage by the purchaser for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer unless the service charges have been paid and are up to date, so it is important for both buyer and seller for the seller to show that they are up to date. This will smooth the conveyancing process.
I own a 1st floor flat in Cotham, conveyancing having been completed 10 years ago. Can you work out an approximate cost of a lease extension? Equivalent properties in Cotham with a long lease are worth £195,000. The ground rent is £45 charged once a year. The lease ceases on 21st October 2089
With 63 years unexpired we estimate the premium for your lease extension to span between £16,200 and £18,600 plus professional fees.
The figure that we have given is a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of comprehensive due diligence. You should not use the figures in a Notice of Claim or as an informal offer. There are no doubt other concerns that need to be considered and clearly you should be as accurate as possible in your negotiations. You should not move forward based on this information without first getting professional advice.
Should I cancel my mortgage payments with Aldermore once a completion date for my home sale in Cotham has been set?
You are best advised to continue meeting any mortgage payments to Aldermore pending the mortgage being paid off out of the proceeds of sale as part of your Cotham conveyancing.