Due to complete my purchase in Raunds next Friday. My lawyer now wants me to supply her with proof of content and building insurance for the property as he says that he has to check this in his capacity as lawyer for the bank. What does the insurance need to cover?
Any lawyer on acting for mortgage companies would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s UK Finance Lenders’ Handbook requirements. These obligations are not limited to conveyancing in Raunds.
Are there restrictive covenants that are commonly identified as part of conveyancing in Raunds?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the legal transfer of property in Raunds. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
How does conveyancing in Raunds differ for newly converted properties?
Most buyers of new build premises in Raunds approach us having been asked by the builder to sign contracts and commit to the purchase even before the premises is finished. This is because new home sellers in Raunds tend to buy 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 conveyancers 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 Raunds or who has acted in the same development.
I have been on the look out for a leasehold apartment up to £195,000 and identified one round the corner in Raunds I like with amenity areas and station nearby, the downside is that it only has 52 years on the lease. There is not much else in Raunds in this price bracket, so just wondered if I would be making a grave error buying a lease with such few years left?
If you need a mortgage the remaining unexpired lease term will be an issue. Reduce the offer by the anticipated lease extension will cost if it has not already been discounted. If the existing owner has owned the premises for a minimum of 2 years you may ask them to start the process of the extension and pass it to you. An additional ninety years can be extended on to the current lease term with a zero ground rent applied. You should speak to your conveyancing lawyer concerning this matter.
Last March I purchased a leasehold flat in Raunds. Do I have any liability for service charges relating to a period prior to my ownership?
In a situation where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
Raunds Leasehold Conveyancing - Examples of Questions you should consider before Purchasing
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On the whole the outlay for major works tend not to be incorporated into the service charges, albeit that some managing agents in Raunds obliged leaseholders to pay into a reserve fund and this is used to offset against major repairs or maintenance. What restrictions exist in the Raunds Lease? Best to be warned if redecorating or some other significant cost is pending to be shared by the leasehold owners and may well dramatically increase the the service fees or necessitate a one time payment.
18 days into buying a property in Raunds. Conveyancing lawyer has called to say the title is "Leasehold". Will this likely adversely affect the marketability of the property?
Raunds conveyancing does not usually involve leasehold houses. The key consideration here is the remaining lease term and the ground rent. If there are over a hundred years remaining with a nominal rent, it's almost the same as freehold, so it shouldn't impact the value significantly.
At the other extreme, if it's, say, Sixty years it is bound to have a significant effect on the saleability, and probably wouldn't be mortgageable. The remaining lease term and ground rent will be stated in the lease provided to your conveyancing practitioner.