I am selling my maisonette in Gloucester and the estate agent has just called to advise that the buyers are appointing a new solicitor. The reason given is that the bank will only deal with property lawyers on their approved list. Why would a leading lender only engage with specific solicitors rather the firm that they want to select to handle their conveyancing in Gloucester ?
Mortgage companies have always had an approved set of law firms they are willing to work with, but in recent years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Mortgage companies justify this action to a rise in fraud by way of justification for the reduction – criteria have been tightened as a smaller panel is easier to keep an eye on. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices 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 not going to have any impact on this.
My partner and I are buying a new build duplex in Gloucester and my solicitor is informing me that she has to the bank to disclose incentives from the developer. The Estate Agents are hassling me to exchange and my preference is not to delay matters. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your conveyancing practitioner. A precondition to being on a mortgage company panel is to comply with the UK Finance Lenders’ Handbook conditions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
I am planning to acquire a property and require a conveyancing solicitor in Gloucester who is on the HSBC Bank solicitor. Can you recommend a local firm?
Our service is limited to being a directory service for firms who wish to listed as being on the approved conveyancing panel for HSBC Bank in certain locations such as Gloucester. We dont recommend any particular firm.
Will my conveyancer be making enquiries concerning flooding during the conveyancing in Gloucester.
Flooding is a growing risk for conveyancers dealing with homes in Gloucester. There are those who buy a property in Gloucester, fully expectant that at some time, it may suffer from flooding. However, aside from the physical destruction, if a property is at risk of flooding, it may be difficult to obtain a mortgage, suitable insurance cover, or dispose of the property. There are steps that can be taken during the course of a house purchase to forewarn the purchaser.
Solicitors are not qualified to impart advice on flood risk, but there are a various checks that can be undertaken by the buyer or on a buyer’s behalf which will give them a better understanding of the risks in Gloucester. The standard information sent to a purchaser’s solicitor (where the Conveyancing Protocol is adopted) incorporates a usual question of the owner to determine if the premises has suffered from flooding. If the residence has been flooded in past which is not disclosed by the owner, then a purchaser may bring a legal claim for losses as a result of such an misleading response. The buyer’s conveyancers will also carry out an enviro search. This should reveal whether there is any known flood risk. If so, additional investigations will need to be conducted.
How does conveyancing in Gloucester differ for new build properties?
Most buyers of new build residence in Gloucester come to us having been asked by the builder to sign contracts and commit to the purchase even before the residence is built. This is because developers in Gloucester tend to purchase the real estate, 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 Gloucester or who has acted in the same development.
I work for a busy estate agent office in Gloucester where we see a few flat sales jeopardised due to short leases. I have received contradictory information from local Gloucester conveyancing solicitors. Can you confirm whether the owner of a flat can commence 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 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 need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the disposal of the property.
An alternative approach is 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 purchaser.
I invested in buying a 2 bed flat in Gloucester, conveyancing formalities finalised 8 years ago. Can you let me have an estimated range of the fair premium for a lease extension? Equivalent properties in Gloucester with a long lease are worth £265,000. The average or mid-range amount of ground rent is £50 per annum. The lease expires on 21st October 2098
You have 76 years left to run we estimate the premium for your lease extension to span between £8,600 and £9,800 plus costs.
The figure above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. You should not use this information in tribunal or court proceedings. There may be additional issues that need to be taken into account and you obviously want to be as accurate as possible in your negotiations. Neither should you take any other action based on this information before getting professional advice.