I am about to put an offer on a leasehold apartment in Ingatestone. The selling agents assure me that it is usual for flats in Ingatestone to have less than 75 years unexpired on the lease. I am obtaining a mortgage with The Mortgage Works. Is this going to be a problem if the lease has 72 years unexpired.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are obtaining a mortgage then your lender may insist that the lease be extended before competition. The Mortgage Works have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 15/5/2022 the requirements read as follows :
Where the unexpired lease term is different to that recorded on the mortgage offer, the following clarifies if we need to be informed:
Second hand property:
- If the unexpired lease term on the offer is 85 years or more - only advise us if the actual lease term is less than 85 years
- if the unexpired lease term on the offer is less than 85 years – advise us if the actual lease term is different than reported
- For equity share applications - advise us if the actual lease term is different than reported on the offer
New build property:
- If the unexpired lease term stated on the offer is 125 years (flat) / 250 years (house) or more - only advise us if the actual lease term is less than 125 years (flat) / 250 years (house)
- For equity share applications - always advise us if the actual lease term is different than reported on the offer
Lease terms such as ground rent and event fees must be reasonable at all times during the term of the lease and adhere to our requirements below. If you’re unsure as to whether the terms of a lease are unreasonable or onerous, please refer the details to us in plain English for Valuer consideration. If the potentially onerous terms are in relation to the ground rent please include the current ground rent figure per annum, how often it will be reviewed and the price structure it will be reviewed against. See the guidance below.
SECOND HAND PROPERTIES
Unacceptable - advise Originations (Will be declined):
- Unexpired lease term less than 70 years
- Less than 30 years remaining at the end of the mortgage term
- Ground Rent greater than 0.5% of the property value
- Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more
- Ground Rent is compounded RPI
- Ground Rent review period less than or equal to 5 years
Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Unexpired lease term is 70 to 85 years
- Ground Rent greater than 0.1% and less than or equal to 0.5% of the property value
- Ground Rent escalation is linked to any indices greater than RPI
- Ground Rent escalation is linked to the value of the building*
- Ground Rent review period is greater than 5 and less than 10 years
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 0.5% of property value p/a (please provide details of what the charges cover)
- Anything that appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Originations):
- Unexpired lease term greater than 85 years
- Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than or equal to 10 years
- Ground Rent escalation less than or equal to RPI
NEW BUILD PROPERTIES (includes office conversions)
Unacceptable - advise Originations (Will be declined):
- Unexpired lease term less than 125 years on a new build flat or less than 250 years on a new build house
- Starting Ground Rent greater than 0.1% of the property value
- Ground Rent review period less than or equal to 5 years
- Ground Rent doubles less than every 20 years (e.g. doubles every 5, 10 or 15 years) - acceptable if doubles every 20 years or more
- Ground Rent is compounded RPI
Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- Event clauses exist for normal use e.g. changing the carpet, installing a TV aerial etc
- Estate Rent Charges greater than £500 p/a (please provide details of what the charges cover)
- Service Charges greater than 0.5% of property value p/a (please provide details of what the charges cover)
- Anything else appears onerous, unusual or out of the ordinary
Acceptable (no requirement to advise Originations):
- Unexpired lease term greater than or equal to 125 years on a new build flat or greater than or equal to 250 years on a new build house
- Starting Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than 5 years
- Ground Rent escalation less than or equal to RPI
* Where the Ground Rent escalation is linked to the value of the building, please provide the following:
- How is the value of the block/unit currently calculated and if the assessment relates to the block(s), how is the Ground Rent calculated/apportioned per property?
- The current valuation and Ground Rent for each unit
- What is the mechanism for future valuations of the block and how is the Ground Rent calculated/apportioned?
- What is the right of appeal? And is this a documented process within the lease?
- Who bears the cost of the valuation (and appeal) process?
- Confirmation the review period is not less than twenty years
I have been told that property searches are the number one cause of delay in Ingatestone house deals. Is that correct?
The Council of Property Search Organisations (CoPSO) has noted the conclusions of a review by MoveWithUs that conveyancing searches do not figure within the common causes of hindrances during the legal transfer of property. Searches are not likely to feature in any slowing down conveyancing in Ingatestone.
Due to the input of my in-laws I had a survey completed on a house in Ingatestone prior to appointing conveyancers. I have been advised that there is a flying freehold aspect to the house. My surveyor has said that some lenders may refuse to give a mortgage on this type of property.
It varies from the lender to lender. Lloyds has different requirements from Birmingham Midshires. Should you wish to telephone us we can check with the relevant lender. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Ingatestone. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Ingatestone to see if the conveyancing costs will increase in light of this.
How simple is it to transfer to a new conveyancer as I have to choose a firm on the Chelsea Building Society conveyancing panel. I hired a local conveyancing solicitor in Ingatestone round the corner but he is not approved by Chelsea Building Society
We will our best to assist in finding you a conveyancing solicitor in Ingatestone on the Chelsea Building Society panel. Please note that the property lawyers that we on the directory do not pay us a referral fee if you instruct them and are regulated by the SRA who regulate all conveyancing solicitors in Ingatestone. In utilising the find a conveyancing solicitor tool on this page, you can scrutinise fees for conveyancing solicitors in Ingatestone and throughout England and Wales.
We're FTB’s - had an offer accepted, but the estate agent advised that the seller will only proceed if we instruct the agent's preferred conveyancers as they are insisting on an ‘expedited deal’. My instinct tells me that we should use a high street conveyancer with experience of conveyancing in Ingatestone
It is highly unlikely the vendors are behind this. Should the owner desire ‘a quick sale', turning down a motivated buyer is likely to cause more damage than good. Speak to the owners direct and make sure they understand (a)you are motivated purchasers (b)you are ready to go, with mortgage lined up © you have nothing to sell (d) you intend to proceed fast (e)however you intend to appoint your own,trusted Ingatestone conveyancing lawyers - not the ones that will earn the negotiator at the agency a kickback or achieve conveyancing thresholds demanded by senior management.
Living abroad I am unable to visit my Ingatestone conveyancing lawyers office to sign documents for conveyancing in Ingatestone – will this be problematic?
Not a problem. Ingatestone conveyancing solicitors can deal with conveyancing transactions for clients from a distance. It is not necessary for you to be able to meet your lawyer in the flesh at a Ingatestone conveyancers office. They can deal with everything via post, email, telephone and fax.