I was informed yesterday by my financial adviser that my Ealing property lawyer is not on the mortgage company Conveyancing panel. What can I do to check?
The sensible course of action for you to take is to call your Ealing conveyancer. It is reasonable to expect your lawyer to notify you what has happened. Where they are not on the panel they may be able to suggest a Ealing conveyancing firm that is on the approved list of lawyers for your bank.
I have 7378 less than 75 years unexpired on my lease and require a lease extension for my apartment in Ealing. Conveyancing solicitors on the The Mortgage Works panel can deal with such extensions correct?
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are obtaining a mortgage then your lender may insist that the lease be extended before competition. The Mortgage Works have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 25/7/2021 the requirements read as follows :
Where the unexpired lease term is different to that recorded on the mortgage offer, the following clarifies if we need to be informed:
Second hand property:
- If the unexpired lease term on the offer is 85 years or more - only advise us if the actual lease term is less than 85 years
- if the unexpired lease term on the offer is less than 85 years – advise us if the actual lease term is different than reported
- For equity share applications - advise us if the actual lease term is different than reported on the offer
New build property:
- If the unexpired lease term stated on the offer is 125 years (flat) / 250 years (house) or more - only advise us if the actual lease term is less than 125 years (flat) / 250 years (house)
- For equity share applications - always advise us if the actual lease term is different than reported on the offer
Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below.
SECOND HAND PROPERTIES
Unacceptable - advise Originations (Will be declined):
- Unexpired lease term less than 70 years
- Less than 30 years remaining at the end of the mortgage term
- Ground Rent greater than 0.5% of the property value
- Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more
- Ground Rent is compounded RPI
- Ground Rent review period less than or equal to 5 years
Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Unexpired lease term is 70 to 85 years
- Ground Rent greater than 0.1% and less than or equal to 0.5% of the property value
- Ground Rent escalation is linked to any indices greater than RPI
- Ground Rent escalation is linked to the value of the building*
- Ground Rent review period is greater than 5 and less than 10 years
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 0.5% of property value p/a (please provide details of what the charges cover)
- Anything that appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Originations):
- Unexpired lease term greater than 85 years
- Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than or equal to 10 years
- Ground Rent escalation less than or equal to RPI
NEW BUILD PROPERTIES (includes office conversions)
Unacceptable - advise Originations (Will be declined):
- Unexpired lease term less than 125 years on a new build flat or less than 250 years on a new build house
- Starting Ground Rent greater than 0.1% of the property value
- Ground Rent review period less than or equal to 5 years
- Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more
- Ground Rent is compounded RPI
Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 0.5% of property value p/a (please provide details of what the charges cover)
- Anything else appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Originations):
- Unexpired lease term greater than or equal to 125 years on a new build flat or greater than or equal to 250 years on a new build house
- Starting Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than 5 years
- Ground Rent escalation less than or equal to RPI
* Where the Ground Rent escalation is linked to the value of the building, please provide the following:
- How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property?
- The current valuation and Ground Rent for each unit
- What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned?
- What is the right of appeal? And is this a documented process within the lease?
- Who bears the cost of the valuation (and appeal) process?
- Confirmation the review period is not less than twenty years
I am being advised by my solicitor that missing deeds insurance is necessary on my purchase. What is the typical level of cover needed for conveyancing in Ealing?
The appropriate level of missing deeds indemnity insurance should be dictated by who your lender. It would differ for example between Accord Mortgages Ltd and Skipton Building Society. Conveyancing lawyers as opposed to members of the public take out such policies.
Can I be sure that the Ealing conveyancing solicitor on the Principality panel is any good?
When it comes to conveyancing in Ealing obtaining recommendations is a sensible start. Before you go ahead, check if they offer a no sale no fee offer. Also, you often get what you pay for - a firm which quotes more, will often provide a better service than one advertising the lowest fees. We would always advise that you speak with the lawyer carrying out your transaction.
HSBC have agreed my mortgage in principle, my offer on a apartment in Ealing has been agreed to, what happens next?
Your property agent will want to know who your solicitors are (be sure the conveyancers are on the lender’s approved list). Telephone HSBC or the financial adviser and finish off any outstanding forms. HSBC will sellect a valuer who will get in touch with the estate agent or vendor to book an appointment. Once conducted (assuming no problems) it takes approximately ten days for the mortgage offer to be issued. HSBC will issue the offer to you and your property lawyers. The legal work will then take it’s course according the nature and complexity of the conveyancing in Ealing.
My wife and I are selling our house in Ealing and according to the buyers it appears that there is a possibility that the property was built on contaminated land. A local lawyer would know that there is no such problem. It does beg the question why the purchasers instructed a factory type conveyancing practice as opposed to a conveyancing solicitor in Ealing. We have lived in Ealing for three years we know that this is a non issue. Should we contact our local Authority to obtain clarification that the buyers are looking for.
It sounds as though you may have a conveyancing firm currently acting for you. What do they say? You need to 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)
Yesterday I discovered that there is a flying freehold element on a property I put an offer in last month in what was supposed to be a simple, chain free conveyancing. Ealing is where the house is located. What do you suggest?
Flying freeholds in Ealing are unusual but are more likely to exist in relation to terraced houses. Even though you don't necessarily need a conveyancing solicitor in Ealing you must be sure that your lawyer goes through the deeds diligently. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Ealing may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold property.
My father-in-law mentioned that before choosing a conveyancing firm they need approved by your mortgage company. I am first time buyer with but I have an AIP via Virgin Money and I already have a family conveyancing lawyer in Ealing at the ready. Can Birmingham Midhshires require an approved conveyancer to be selected? If so, where can I find that list for my conveyancing in Ealing?
You need to instruct a solicitor that is on the Birmingham Midhshires panel. The first thing to do is ring your chosen Ealing conveyancing lawyer to check if they are on the Birmingham Midhshires panel. If they are not approved you have a couple of choices open to you here:
- Proceed with your chosen Ealing solicitor but Birmingham Midhshires will no doubt appoint a solicitor on their approved list. This will result in additional cost together with potential frustration.
- Appoint a new conveyancing practitioner to conduct the conveyancing, making sure they are on the Birmingham Midhshires conveyancing panel.
- Appeal to your conveyancing practitioner to apply to join the mortgage company panel.