The vendors of the home we are hoping to buy have appointed a conveyancing practitioner in Kidwelly who has suggested a lock out contract with a deposit two thousand pounds. Are such agreements sensible?
There are a couple of main concerns with signing a lock out agreement (also known as an exclusivity agreement) is that it takes away the focus from moving forward with the conveyancing work, so in the absence of it needing limited or no negotiation then it could transpire to be unhelpful. It is not particularly popular by Kidwelly conveyancing solicitors for this reason. The other main concern is the extent of the remedies available - a jilted purchaser is not likely to secure an injunction to prohibit the owner selling to another buyer, so the only remedy open via the agreement will be the recovery of wasted costs and, in restricted situations, the additional payment of penalties.
I own a freehold premises in Kidwelly yet charged rent, why is this and what is this?
It’s unusual for properties in Kidwelly and has limited impact for conveyancing in Kidwelly 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 hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges post 1977.
Previous rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.
Will my conveyancing lawyers need to check that the building insurance for my purchase of a house in Kidwelly. My lender is Accord Mortgages
Accord Mortgages have specific requirements as set out in the UK Finance Lenders’ Handbook. As of 5/12/2023, the requirements read as follows :
Due to the input of my in-laws I had a survey completed on a house in Kidwelly prior to retaining conveyancers. I have been told that there is a flying freehold aspect to the house. Our surveyor has said that some lenders may not issue a loan on such a home.
It varies from the lender to lender. HSBC has different instructions for example to Halifax. If you contact us we can check with the appropriate mortgage company. If you lender is happy to lend one our lawyers can assist as they are used to dealing with flying freeholds in Kidwelly. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Kidwelly to see if the conveyancing will be more expensive.
What advice can you give us when it comes to appointing a Kidwelly conveyancing practice to deal with our lease extension?
When appointing a conveyancer for your lease extension (regardless if they are a Kidwelly conveyancing practice) it is essential that he or she should be familiar with the legislation and specialises in this area of work. We suggest that you speak with several firms including non Kidwelly conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. The following questions could be useful:
How experienced is the practice with lease extension legislation? If they are not ALEP accredited then why not?
I am the registered owner of a studio flat in Kidwelly, conveyancing was carried out 7 years ago. Can you please calculate a probable premium for a statutory lease extension? Comparable properties in Kidwelly with a long lease are worth £180,000. The average or mid-range amount of ground rent is £65 invoiced every year. The lease comes to an end on 21st October 2081
You have 58 years unexpired we estimate the price of your lease extension to be between £21,900 and £25,200 as well as legals.
The figure 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 due diligence. You should not use this information in tribunal or court proceedings. There may be additional issues that need to be considered and clearly you should be as accurate as possible in your negotiations. Neither should you move forward based on this information before getting professional advice.
My estate agent has suggested using their lawyer for our conveyancing in Kidwelly - Surely it’s advisable to just instruct them?
This is not necessarily the case and you are at liberty to instruct whichever conveyancer you prefer for your Kidwelly conveyancing. A solicitor put forward by an estate agent may not necessarily be the best conveyancer, they may suggest their preferred conveyancing firm who are based remotely. In this instance you may not have contact with your conveyancing practitioner and due to the lack of continuity in the transaction, it may be difficult to obtain updates.