Due to move into my new home in Fitzrovia next Friday. I have now been asked to send a copy of my building insurance schedule by my solicitor as he says that he has to check this in his capacity as lawyer for the mortgage company. What risks does the mortgage company expect the insurance to cover?
All property lawyers on acting for banks would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s Part 2 conditions. These requirements are not unique to conveyancing in Fitzrovia.
There are plenty of conveyancing solicitors in Fitzrovia but how do I know who's good?
We would encourage you not to base your choice on the lowest Fitzrovia conveyancing costs illustration. You really do get what you pay for when it comes to conveyancing solicitors. A cheap quote may mean that the conveyancing solicitor is handling a lot of jobs at one time and you won’t get the quality of service and the attention that you need. It is, however, wise to use a conveyancer who has a fixed fee on a no sale, no fee basis. This way, you know exactly what you’ll have to pay in ahead of time.
When it comes to mortgage companies such as Lloyds, do Fitzrovia solicitors incur a fee to be on the conveyancing panel?
We are unaware of any bank fees to register on their list of approved firms, although some do levy an administration fee to deal with the processing of the conveyancing panel submission.
I have a mortgage with Yorkshire BS for my property in Fitzrovia. Conveyancing was finalised 12 months ago. Should I wish to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Yorkshire BS?
You must advise Yorkshire BS prior to letting out your property as this is likely to be a breach of Yorkshire BS’s mortgage conditions. It may be that Yorkshire BS will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Yorkshire BS directly. It should not be necessary to do this via a Yorkshire BS conveyancing panel solicitor.
Should our solicitor be raising enquiries concerning flooding as part of the conveyancing in Fitzrovia.
The risk of flooding is if increasing concern for lawyers dealing with homes in Fitzrovia. There are those who buy a house in Fitzrovia, fully aware that at some time, it may suffer from flooding. However, leaving to one side the physical destruction, if a property is at risk of flooding, it may be difficult to get a mortgage, adequate building insurance, or dispose of the premises. Steps can be carried out as part of the conveyancing process to forewarn the purchaser.
Conveyancers are not qualified to offer advice on flood risk, however there are a numerous checks that can be undertaken by the purchaser or on a buyer’s behalf which should figure out the risks in Fitzrovia. The conventional set of completed inquiry forms supplied to a buyer’s lawyer (where the solicitors are adopting what is known as the Conveyancing Protocol) includes a usual question of the vendor to discover if the property has suffered from flooding. If flooding has previously occurred and is not disclosed by the seller, then a buyer could bring a legal claim for losses as a result of such an inaccurate reply. The buyer’s solicitors will also carry out an environmental search. This will higlight whether there is a recorded flood risk. If so, more detailed investigations will need to be carried out.
3 months have gone by following my purchase conveyancing in Fitzrovia took place. I have checked the Land Registry website which shows that I paid £150,000 when infact I paid £180,000. Why the discrepancy?
The price paid figure is taken from the application to register the purchase. It is the figure included in the Transfer (the legal deed which transfers the residence from one person to the other) and referred to as the 'consideration' or purchase price. You can report an error in the price paid figure using the LR online form. In most cases errors result from typos so at first glance the figure. Do report it so they can double check and advise.
I am buying a new build flat in Fitzrovia. Conveyancing is daunting at the best of times but I have never purchased a new build flat before. Can you give me some examples of some of the questions asked in new build conveyancing.
Set out below is a sample of a few leasehold new build enquiries that you can expect your new-build leasehold conveyancing in Fitzrovia
-
Will the freehold then be transferred for a nominal consideration (not exceeding £100) to the Management Company? Investor purchasers must be able to freely grant unsecured tenancies at market rents without requiring any consents. The Vendor must covenant to keep unoccupied units in good repair until long leases are granted therefore. Where there is an Undertaking being granted there is the risk of forfeiture of the Headlease subject to relief if one or more of the Underlessees are willing to accept the original Head Lessee’s obligations as otherwise relief will be denied to the Underlessees. The only alternatives are the Head Lessor agreeing not to forfeit the Headlease or the Head Lessee guaranteeing to the Underlessees that it will not be in breach of the Headlease. The Lease must contain a provision on behalf of the Vendor to pay the service charges in respect of unoccupied units in order to ensure that all services can be provided.
I own a leasehold flat in Fitzrovia. Conveyancing was completed in five years ago. I have read on numerous advice forums that I mustn’t allow the lease length fall too low. What is the reasoning?
Fitzrovia residential long term leases are for a fixed term - normally ninety nine years when they started. However a significant appartments in Fitzrovia were built or converted 25 or more years ago and so such leases now have less than eighty years unexpired. That may seem like a long time however Banks, Building Societies and other mortgage institutions generally need leases to have a minimum of 75 years remaining to adequate security. Accordingly when you come to sell the property you will need to extend the term of your lease if you are approaching eighty years. To optimize the saleability of your property you should be considering whether or not to extend your lease long before you come to sell it. Furthermore advantages to doing so before the lease reaches even 80 years as when the lease is below eighty years the premium to be paid to extend starts to get a lot more expensive.