I am 3 weeks into the sale of my flat in Highbridge and the estate agent has just called to warn that the purchasers are switching property lawyer. I am told that this is due to the fact that the lender will only engage with property lawyers on their approved list. On what basis would a big named lender only deal with specific lawyers rather the firm that they want to choose for their conveyancing in Highbridge ?
Mortgage companies have always had an approved set of law firms that can represent them, but in the last few years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for more than 15 years.
Mortgage companies point to the increase in fraud by way of justification for the pruning – criteria have been tightened 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. 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. Your buyers are unlikely to have any impact on this.
Will my lawyer be asking questions about flooding during the conveyancing in Highbridge.
Flooding is a growing risk for lawyers specialising in conveyancing in Highbridge. Some people will purchase a house in Highbridge, fully aware that at some time, it may be flooded. However, aside from the physical damage, if a property is at risk of flooding, it may be difficult to obtain a mortgage, satisfactory building insurance, or sell the premises. There are steps that can be taken during the course of a property purchase to forewarn the buyer.
Lawyers are not best placed to give advice on flood risk, but there are a number of searches that may be carried out by the purchaser or by their lawyers which will give them a better appreciation of the risks in Highbridge. The conventional set of property information forms supplied to a buyer’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) incorporates a standard question of the vendor to discover if the premises has ever been flooded. In the event that flooding has previously occurred and is not revealed by the owner, then a buyer may bring a claim for damages as a result of such an incorrect reply. A purchaser’s conveyancers will also order an environmental search. This should indicate if there is any known flood risk. If so, additional investigations will need to be carried out.
How does conveyancing in Highbridge differ for new build properties?
Most buyers of new build premises in Highbridge approach us having been asked by the builder to sign contracts and commit to the purchase even before the property is constructed. This is because house builders in Highbridge typically acquire 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 property lawyers 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 Highbridge or who has acted in the same development.
I am looking for a flat up to £245,000 and found one close by in Highbridge I like with open areas and railway links in the vicinity, the downside is that it only has 49 remaining years left on the lease. There is not much else in Highbridge in this price bracket, so just wondered if I would be making a mistake purchasing a short lease?
Should you need a mortgage the shortness of the lease will be problematic. Reduce the offer by the amount the lease extension will cost if not already taken into account. If the existing proprietor has owned the premises for a minimum of twenty four months you can ask them to commence the lease extension formalities and pass it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should consult your conveyancing lawyer concerning this matter.
I work for a reputable estate agent office in Highbridge where we have experienced a few leasehold sales jeopardised as a result of leases having less than 80 years remaining. I have been given conflicting advice from local Highbridge conveyancing firms. Could you clarify whether the owner of a flat can start the lease extension formalities for the purchaser on completion of the sale?
Provided that the seller has been the owner 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 proposed purchaser can avoid having 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 at the same time as completion of the disposal of the property.
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 purchaser.
I inherited a leasehold flat in Highbridge, conveyancing formalities finalised half a dozen years ago. Can you give me give me an indication of the likely cost of a lease extension? Equivalent properties in Highbridge with an extended lease are worth £202,000. The ground rent is £60 per annum. The lease expires on 21st October 2082
With only 57 years unexpired we estimate the price of your lease extension to span between £28,500 and £33,000 as well as costs.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you the actual costs in the absence of detailed due diligence. Do not use this information in tribunal or court proceedings. There are no doubt other concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. You should not move forward placing reliance on this information before getting professional advice.
I would be grateful if you could explain what options are available to me where my Highbridge conveyancing searches reveals negative results?
Usually, most issues arising from Highbridge conveyancing search results can be handled prior to completion or indemnity insurance can be put on cover. You need to remember that although you may be purchasing the premises and might be willing to accept the search results, your building society or bank may not, and when all said and done the decision rests with them.