I am selling my apartment in Cumberland and the EA has just telephoned to warn that the purchasers are swapping conveyancer. The reason given is that the bank will only deal with property lawyers on their approved list. On what basis would a major mortgage company only work with specific solicitors rather the firm that they want to select to handle their conveyancing in Cumberland ?
Lenders have always had panels of law firms that can act for them, but in recent years big names such as Nationwide, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for more than 15 years.
Lenders blame a rise in fraud as the reason for the cull – criteria have been stiffened as a smaller panel is easier to oversee. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The purchasers are unlikely to have any sway in the decision.
I am refinancing my apartment in Cumberland, does my lawyer need to be on the HSBC Conveyancing panel?
In theory, you could use a solicitor that is not on the HSBC conveyancing panel, but HSBC would require one of their panel solicitors to be instructed to act in their interests, and you'd have to pay for this - so most people instruct a panel solicitor. It's also easier, as otherwise you'd have to deal with two solicitors for the same conveyancing matter.
How does conveyancing in Cumberland differ for newly converted properties?
Most buyers of new build premises in Cumberland contact us having been asked by the builder to sign contracts and commit to the purchase even before the residence is constructed. This is because builders in Cumberland tend to purchase the site, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct conveyancing solicitors as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in Cumberland or who has acted in the same development.
I have been on the look out for a ground for flat up to £235,500 and identified one close by in Cumberland I like with a park and station nearby, the downside is that it only has 52 remaining years left on the lease. There is not much else in Cumberland suitable, so just wondered if I would be making a mistake purchasing a lease with such few years left?
Should you need a mortgage the shortness of the lease may be problematic. Discount the offer by the amount the lease extension will cost if it has not already been discounted. If the existing proprietor has owned the premises for a minimum of 2 years you can request that they start the process of the extension and pass it to you. You can add 90 years to the current lease with a zero ground rent applied. You should speak to your conveyancing solicitor regarding this matter.
I work for a long established estate agent office in Cumberland where we see a number of flat sales put at risk due to short leases. I have been given inconsistent advice from local Cumberland conveyancing solicitors. Could you shed some light as to whether the owner of a flat can commence the lease extension process for the purchaser on completion of the sale?
As long as the seller has owned the lease 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 to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the sale.
Alternatively, it may be possible 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 buyer.
Cumberland Conveyancing for Leasehold Flats - Sample of Queries Prior to Purchasing
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Does the lease contain onerous restrictions? Who is in charge of the building? How much is the maintenance charge and ground rent on the flat?
Is it the case that all Cumberland legal practices on every bank conveyancing panel?
You can use our search tool or you can go into your high street lender branch in Cumberland. the probability is that they can recommend conveyancing solicitors in Cumberland