I am six weeks into the sale of my house in Haddenham and the estate agent has just called to advise that the buyers are appointing a new property lawyer. The excuse is that the bank will only engage with solicitors on their conveyancing panel. On what basis would a leading lender only deal with certain law firms rather the firm that they want to appoint to handle their conveyancing in Haddenham ?
Lenders have always had an approved set of law firms they are content to work with, but in the last few years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 25 years.
Mortgage companies point to the increase in fraud by way of justification for the cull – criteria have been stiffened as a smaller panel is easier to oversee. No lender will say 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. Some are unaware that 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 impact on this.
My property lawyer in Haddenham has never been on on the Norwich and Peterborough Building Society Conveyancing Panel. Is it possible for me to retain my family solicitor notwithstanding that they are not on the Norwich and Peterborough Building Society panel of approved conveyancing solicitors?
Your options are as follows:
- Complete the purchase with your existing Haddenham lawyers but Norwich and Peterborough Building Society will need to use a solicitor on their list of acceptable firms. This will result in additional total conveyancing charges as well as cause frustration.
- Find a new solicitor to to deal with the conveyancing, not forgetting to check they are Norwich and Peterborough Building Society approved.
- Try to convince your Norwich and Peterborough Building Society based solicitor to seek to join the Norwich and Peterborough Building Society panel
Various internet forums that I have frequented warn that are the number one reason for hinderance in Haddenham house deals. Is there any truth in this?
The Council of Property Search Organisations (CoPSO) has noted the conclusions of research by MoveWithUs that conveyancing searches do not feature within the most frequent causes of delays in the conveyancing process. Searches are not likely to feature in any slowing down conveyancing in Haddenham.
I am buying my first flat in Haddenham benefiting from help to buy. The sellers would not budge the price so I negotiated five thousand pounds worth of fixtures and fittings instead. The house builders rep advised me not reveal to my lawyer about the side-deal as it could jeopardize my loan with Britannia. Do I keep my lawyer in the dark?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I am attracted to a couple of flats in Haddenham which have approximately forty five years remaining on the lease term. Should I regard a short lease as a deal breaker?
There are no two ways about it. A leasehold apartment in Haddenham is a wasting asset as a result of the shortening lease. The nearer the lease gets to zero years unexpired, the more it reduces the salability of the premises. For most buyers and mortgage companies, leases with under 75 years become less and less attractive. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of premises with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Haddenham conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Haddenham Leasehold Conveyancing - A selection of Questions you should ask before Purchasing
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Are any of leasehold owners in dispute over their service charge payments? How much is the yearly maintenance fee and ground rent? This information is important as a) areas could result in problems for the building as the communal areas may begin to deteriorate if maintenance are not paid for b) if the leaseholders have an issue with the running of the building you will need to know about it
I have chosen a Haddenham conveyancing solicitor for our house purchase (FTB’s) and have picked up in the engagement letter that they are not overseen by the Financial Conduct Authority. Need I be concerned or is that usually the case with property lawyer?
We can't see why they should be. Most lawyer don't lend money. They will be governed by the SRA, who have specific conditions in relation to amounts held by them.