Our solicitor has identified a defect with the lease for the flat we are purchasing in Halkyn. The seller’s lawyers have suggested title insurance as a solution. We are happy with insurance and will cover the costs. Our property lawyer says that he must ensure that the bank is content with this solution. Who is the client here, us or the lender?
Even though you have a mortgage offer from the bank does not mean to say that the property will meet their specifications for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook conditions. You and the lender are the client. These conveyancing instructions have to be complied with.
I own a freehold premises in Halkyn but still charged rent, why is this and what is this?
It is rare for properties in Halkyn and has limited impact for conveyancing in Halkyn 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 establishment of new rentcharges from 1977 onwards.
Previous rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 is to be extinguished.
How does conveyancing in Halkyn differ for new build properties?
Most buyers of new build property in Halkyn contact us having been asked by the developer to sign contracts and commit to the purchase even before the house is built. This is because developers in Halkyn usually buy the land, 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 conveyancers 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 accustomed to new build conveyancing in Halkyn or who has acted in the same development.
I am looking for a ground for flat up to £245,000 and identified one close by in Halkyn I like with open areas and station in the vicinity, however it only has 52 remaining years left on the lease. There is not much else in Halkyn suitable, so just wondered if I would be making a grave error purchasing a lease with such few years left?
Should you require a home loan the remaining unexpired lease term will likely be a potential deal breaker. Discount the offer by the anticipated lease extension will cost if it has not already been discounted. If the current proprietor has owned the property for at least 2 years you can ask them to start the process of the extension and then assign it to you. An additional ninety years can be extended on to the current lease term and have £0 ground rent by law. You should consult your conveyancing solicitor about this.
I was pointed in your direction by two or three local estate agents in Halkyn to locate a conveyancer using your seach tool. What’s the financial advantage for Estate Agents to offer your lawyers rather than a competitor’s?
We don’t make any referral fee for pointing buyers and sellers in our direction. We thought it would be too underhand a fee because home movers will think, ‘How come the agent getting a kickback? Why am I not receiving any benefit too?’ So we decided to step away from that.
I am looking at a two maisonettes in Halkyn both have about fifty years left on the lease term. Will this present a problem?
A lease is a right to use the premises for a period of time. As the lease gets shorter the saleability of the lease reduces and it becomes more expensive to acquire a lease extension. This is why it is often a good idea to extend the lease term. Sometimes it is difficult to sell a property with a short lease because mortgage lenders may be unwilling to lend money on properties of this type. Lease extension can be a protracted process. We recommend you seek professional help from a solicitor and surveyor with experience in this arena.
Leasehold Conveyancing in Halkyn - Sample of Questions you should consider Prior to buying
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Plenty Halkyn leasehold apartments will have a service bill for maintenance of the building set by the landlord. If you buy the apartment you will have to meet this charge, normally periodically during the year. This may vary from a couple of hundred pounds to thousands of pounds for bigger purpose-built buildings. In all likelihood there will be a rentcharge for you to pay annual, ordinarily this is not a significant figure, say around £25-£75 but you need to check it because sometimes it could be many hundreds of pounds. How many of the leaseholders are in arrears for their maintenance charge payments?