My partner and I have lately purchased a house in Kearsley. We have noticed several issues with the house which we believe were missed in the conveyancing searches. What action can we take? What searches should? have been carried out for conveyancing in Kearsley?
It is not clear from the question as to the nature of the problems and if they are unique to conveyancing in Kearsley. Conveyancing searches and investigations initiated during the buying process are carried out to help avoid problems. As part of the legal transfer of property, a property owner completes a document referred to as a SPIF. answers proves to be incorrect, you may have a misrepresentation claim against the vendor for any losses that you have suffered. The survey should have identified any problems with the structure of the property. Assuming a detailed survey was carried out and the issues were not identified, you may have a claim against the surveyor. However, if you did not have a full survey, you may be responsible for fixing any defects that have now been noted. We would always encourage buyers to take every possible step to ensure they are completely aware of the condition of a property before purchase regardless of whether they are buying in Kearsley.
About to place a bid on a leasehold property in Kearsley. The estate agents tell me that it is usual for flats in Kearsley to have less than 75 years unexpired on the lease. I am getting a mortgage with The Mortgage Works. Will the property be mortgageable given that the lease has 69 years to go.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are securing 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 25/4/2024 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 Issuing Office (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 Issuing Office (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 1.0% 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 Issuing Office):
- 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 Issuing Office (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
- Any lease which is subject to a ground rent (or annual rent) being charged which is more than on a peppercorn basis
- Any lease which is subject to a ground rent (or annual rent) being reviewed and altered on any review basis or methodology
Refer to Issuing Office (Valuer will consider any impact on valuation figure and marketability):
- 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 1.0% 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 Issuing Office):
- 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
- A lease subject to a peppercorn ground rent (annual rent) charges
For the avoidance of doubt, any new build properties completed but not sold pre 30 June 2022 will only be acceptable if the lease conforms to the above guidance
* 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
LEASE EXTENSIONS
We require all lease extensions to be completed under the Leasehold Reform Housing and Urban Development Act 1993 and to meet the above criteria as a minimum. Where you become aware that it does not meet these requirements, please refer to the Issuing Office
A relative pointed out to me me that in purchasing a property in Kearsley there may be a number of restrictions prohibiting external changes to the property. Is this right?
We are aware of a number of properties in Kearsley which have some sort of restriction or requirement of consent to carry out external changes. Part of the conveyancing in Kearsley should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
Are all Kearsley Conveyancing Quality Solicitors on the Clydesdale conveyancing panel?
Some major lenders now make use of the accreditation scheme as the kick off point for Panel approval such as HSBC and Santander. The Law Society’s CQS accreditation however gives no guarantee to lender panel acceptance. Nevertheless,the Council of Mortgage Lenders have indicated that it is likely to become a pre-requisite for firms wishing to remain on their approved list of firms.
Lloyds have agreed my home loan in principle, my offer on a house in Kearsley has been agreed to, what happens next?
Your property agent will want to be informed of your property lawyer's details (make sure the conveyancers are on the lender’s approved list). Telephone Lloyds or your financial adviser and finalise any relevant paperwork. Lloyds will appoint a valuer who will get in contact with the estate agent or seller to arrange an appointment. Once carried out (assuming no problems) it takes on average ten days to receive the mortgage offer. Lloyds will issue the offer to you and your lawyers. The legal work will then take it’s course according the nature and complexity of the conveyancing in Kearsley.
I am buying my first flat in Kearsley benefiting from help to buy. The builders refused to move on the amount so I negotiated five thousand pounds worth of additionals instead. The sale representative suggested that I not reveal to my lawyer about the extras as it may adversely affect my loan with The Mortgage Works. Should I keep quiet?.
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.
Am I right to be wary by brokers that I am dealing with are encouraging me to use a nationwide conveyancing firm as opposed to a High Street Kearsley conveyancing firm?
As is the case with many professional services, often referrals from relatives can be very helpful. But there are many players in a conveyancing matter; estate agents, financial adviser and banks might all recommend conveyancers to select. Sometimes these solicitors might be known to one of the organisations as one of the best in their field, but occasionally there is an underlying financial incentive behind the endorsement. You have the right to select your own lawyer. Don't forget that some mortgage providers have an approved list of lawyers you are obliged to use for the lender related work in your conveyancing.
I am hoping to sign contracts shortly on a basement flat in Kearsley. Conveyancing solicitors have said that they will have a report out to me within the next couple of days. What should I be looking out for?
The report on title for your leasehold conveyancing in Kearsley should include some of the following:
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Specifying your legal entitlements in relation to common areas in the building.By way of example, does the lease permit a right of way over an accessway or hallways? The physical ownership of the property. This will be the flat itself but could also incorporate a roof area or basement if applicable. It needs to be made clear to you whether the lease permits you to add or improve aspects of the premises- you must be made aware as to whether any restrictions relates to all alterations or limited to structural alteration, and whether consent is required Rent payments - what is payable and when is collected, and also know whether this is subject to change
I acquired a 2 bed flat in Kearsley, conveyancing was carried out 5 years ago. Can you give me give me an indication of the likely cost of a lease extension? Comparable properties in Kearsley with over 90 years remaining are worth £255,000. The average or mid-range amount of ground rent is £45 invoiced every year. The lease ceases on 21st October 2097
You have 73 years unexpired we estimate the premium for your lease extension to span between £8,600 and £9,800 as well as legals.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of detailed investigations. You should not use the figures in tribunal or court proceedings. There may be other issues that need to be considered and clearly you should be as accurate as possible in your negotiations. You should not take any other action based on this information without first seeking the advice of a professional.