Our conveyancer has identified a defect with the lease for the flat we are buying in Crick. The other side have offered title insurance as a workaround. We are happy with insurance and will pay for it. Our conveyancer says that he must ensure that the bank is content with this solution. Who is the client here, us or the lender?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the lender are the client. Your lawyer must comply with the UK Finance Lenders’ Handbook specifications. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your conveyancing practitioner will have no choice but to discontinue acting for you.
I am the registered owner of a freehold residence in Crick yet pay rent, why is this and what is this?
It is rare for properties in Crick and has limited impact for conveyancing in Crick 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 hundreds of years, but the Rent Charge Act 1977 barred the establishment of fresh rentcharges from 1977 onwards.
Previous rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence after 2037 is to be extinguished.
We're in Crick, First timers purchasing with a mortgage (lender is RBS , and our lawyer is on the RBS conveyancing panel). How long should the conveyancing process take?
The fact that your lawyer is on the RBS conveyancing panel is a help. It would almost certainly delay matters if they were not. However, no solicitor should guarantee a timeframe for your conveyancing, due to third parties outside of your control such as delays caused by lenders,conveyancing search providers or by the other side’s solicitors. The time taken is often determined by the number of parties in a chain.
I have been on the look out for a ground for flat up to £195,000 and identified one close by in Crick I like with open areas and railway links in the vicinity, the downside is that it's only got 61 years on the lease. There is not much else in Crick in this price bracket, so just wondered if I would be making a mistake purchasing a lease with such few years left?
Should you require a home loan the remaining unexpired lease term will be problematic. Discount the price by the anticipated lease extension will cost if not already taken into account. If the current proprietor has owned the premises for a minimum of twenty four months you can request that they commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the current lease with a zero ground rent applied. You should consult your conveyancing solicitor regarding this matter.
Expecting to complete next month on a leasehold property in Crick. Conveyancing lawyers assured me that they will have a report out to me within the next couple of days. What should I be looking out for?
Your report on title for your leasehold conveyancing in Crick should include some of the following:
-
if lease has a provision for a sinking fund? You should have a good understanding of the building insurance requirements You would want to be sent a copy of the lease Information concerning the obligations in the lease to pay service charges - in respect of the block, and the wider rights a lessee enjoys Specifying your legal entitlements in relation to the communal areas in the building.By way of example, does the lease contain a right of way over an accessway or staircase?
Crick Conveyancing for Leasehold Flats - A selection of Queries Prior to Purchasing
-
What is the name of the managing agents? For many Crick leaseholds the outlay for major works tend not to be wrapped into the service charges, albeit that some managing agents in Crick obliged leaseholders to pay into a reserve fund and this is used to offset against major repairs or maintenance. Is anyone aware of any major works anticipated that will likely increase the service costs?
Our property lawyer in Crick has informed me that he requires personal identification documents stating that this forms part of his legal duty as a conveyancer on the lender Solicitor panel. Can you confirm whether this is the case?
Anti-terror and anti-money-laundering rules require Crick conveyancing solicitors and licensed conveyancers to verify the identity of the person or body they are dealing with before they can accept their conveyancing business. The Client Care letter that you need to sign will no doubt confirm this. Your lawyer is right that the lender also require certain documents to be viewed. If a you refuse to provide ID verification documents, your conveyancer would not be able to accept instructions from you. Your lawyer also has obligations to obtain certain documents in accordance with the mortgage company's UK Finance Lenders’ Handbook requirements