I purchased a freehold house in Handsworth but still pay rent, why is this and what is this?
It’s unusual for properties in Handsworth and has limited impact for conveyancing in Handsworth 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 date back many centuries, but the Rent Charge Act 1977 barred the generation of fresh rentcharges from 1977 onwards.
Old rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence after 2037 will be extinguished.
What happens if my lawyer’s firm is expelled from the Clydesdale Solicitor panel ahead of completing my conveyancing in Handsworth?
First, this is a very rare occurrence. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
My wife and I own a 4 bedroom Victorian property in Handsworth. Conveyancing solicitor acted for me and Accord Mortgages Ltd. I did a free Land Registry search last week and I saw two entries: one for freehold, the second leasehold under the exact same property. Is it worth asking Accord Mortgages Ltd to clarify?
You should assess the Freehold register you have again and check the Charges Register as there may be mention of a lease. The best way to be sure that you are also the registered proprietor of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Handsworth and other locations in the country and poses no real issues for owners other than when they mortgage they have to account for both freehold and leasehold interests when dealing with buyers. You can also check the situation with your conveyancing practitioner who conducted the conveyancing.
I've recently found out that there is a flying freehold issue on a house I have offered on two weeks back in what was supposed to be a simple, no chain conveyancing. Handsworth is where the house is located. Is there any guidance you can give?
Flying freeholds in Handsworth are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Handsworth you would need to get your solicitor to go through the deeds thoroughly. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Handsworth may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold residence.
I work for a long established estate agency in Handsworth where we have witnessed a few flat sales derailed due to short leases. I have received inconsistent advice from local Handsworth conveyancing firms. Can you clarify whether the vendor of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?
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. The benefit of this is that the buyer can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed 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 buyer.
I purchased a garden flat in Handsworth, conveyancing was carried out in 2011. Can you please calculate a probable premium for a statutory lease extension? Comparable properties in Handsworth with over 90 years remaining are worth £192,000. The ground rent is £55 charged once a year. The lease finishes on 21st October 2076
With just 54 years remaining on your lease we estimate the price of your lease extension to span between £32,300 and £37,400 plus professional fees.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we are not able to provide a more accurate figure without more comprehensive investigations. Do not use the figures in tribunal or court proceedings. There are no doubt other concerns that need to be considered and you obviously want to be as accurate as possible in your negotiations. You should not move forward based on this information without first getting professional advice.
What type of premises does your Handsworth conveyancing estimates relate to?
Our conveyancing quotes are only appropriate to standard residential premises in England & Wales. If you have any different needs such as industrial or agricultural property or commercial conveyancing in Handsworth you should contact us to discuss your requirements .