All was ready to move into my new home in Formby next Monday. My solicitor now wants me to supply her with evidence of content and building insurance for the property as as she informs me that she is duty bound to validate that it is in order for the lender. What risks does the bank expect the insurance to cover?
All property lawyers on acting for mortgage companies 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 Formby.
I own a freehold house in Formby but nevertheless charged rent, why is this and what is this?
It is rare for properties in Formby and has limited impact for conveyancing in Formby 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 have existed for many centuries, but the Rent Charge Act 1977 barred the generation 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 post 2037 is to be dispensed with completely.
I am planning to acquire a house and require a conveyancing solicitor in Formby who is on the Barclays Direct solicitor. Could you point me in the right direction as regards a solicitor?
Our service is limited to being a directory service for firms who wish to listed as being on the approved conveyancing panel for Barclays Direct in certain locations such as Formby. We dont recommend any particular firm.
Should our lawyer be raising questions regarding flooding as part of the conveyancing in Formby.
The risk of flooding is if increasing concern for conveyancers conducting conveyancing in Formby. There are those who acquire a property in Formby, fully expectant that at some time, it may suffer from flooding. However, aside from the physical destruction, if a house is at risk of flooding, it may be difficult to obtain a mortgage, adequate building insurance, or dispose of the property. There are steps that can be taken during the course of a house purchase to forewarn the buyer.
Lawyers are not qualified to offer advice on flood risk, but there are a various searches that may be undertaken by the buyer or by their lawyers which will give them a better appreciation of the risks in Formby. The conventional set of information given to a purchaser’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) incorporates a usual question of the seller to discover whether the premises has suffered from flooding. If flooding has previously occurred which is not disclosed by the seller, then a purchaser may commence a compensation claim as a result of such an inaccurate response. A buyer’s conveyancers will also carry out an environmental report. This should reveal whether there is any known flood risk. If so, additional investigations should be carried out.
I am employed by a busy estate agency in Formby where we see a number of leasehold sales jeopardised as a result of short leases. I have received contradictory information from local Formby conveyancing solicitors. Please can you shed some light as to whether the seller of a flat can initiate the lease extension formalities for the buyer?
As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to wait 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 extend the lease informally by agreement with the landlord 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.
I am the registered owner of a 1 bedroom flat in Formby, conveyancing having been completed in 1995. Can you work out an approximate cost of a lease extension? Corresponding flats in Formby with a long lease are worth £216,000. The average or mid-range amount of ground rent is £50 charged once a year. The lease ceases on 21st October 2095
With 70 years remaining on your lease we estimate the price of your lease extension to be between £9,500 and £11,000 as well as plus your own and the landlord's "reasonable" professional fees.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure without more comprehensive investigations. You should not use this information in tribunal or court proceedings. There are no doubt other concerns that need to be taken into account and you obviously should be as accurate as possible in your negotiations. You should not take any other action placing reliance on this information before getting professional advice.
I am expecting to complete buying a property in Formby but as a consequence of damage from the recent storms I have negotiated recompense from the owner of four thousand pounds taking the form of a reduction in the price. I had intended this to be addressed as part of the conveyancing process yet my mortgage company will not agree to this. Why were they notified?
The conveyancing practitioner listed on a mortgage company conveyancing panel is required to advise the lender of any changes to the purchase amount. If you were to refuse your conveyancer to report the reduction to your lender then they would have to discontinue acting for you and the lender.