I am nearing exchange of contracts for my home in Shildon and the EA has just called to advise that the buyers are switching conveyancer. I am told that this is due to the fact that the bank will only engage with solicitors on their conveyancing panel. Why would a major mortgage company only deal with specific law firms rather the firm that they want to appoint for their conveyancing in Shildon ?
UK lenders have always had panels of law firms they are content to work with, but in the past few years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for many years.
Lending institutions point to the increase in fraud as the reason for the reduction – criteria have been tightened as a smaller panel is easier to maintain. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your purchasers are not going to have any impact on this.
Do the conveyancing practitioners identified through your search tool handle auction conveyancing in Shildon?
We know of a number of auction solicitors we can put you in touch with those specialising in auction conveyancing. Shildon is one of our locations where our lawyers cover.
Finally the sale completed on my house in Shildon last May but our buyer keeps texting every few hours complaining that her lawyer needs to hear from mylawyer. What should my lawyer have done following completion?
After completion of your sale your lawyer should deliver the transfer deeds and all supplemental paperwork to the buyer’s solicitors. Where relevant, your lawyer should also confirm that the legal charge in favour of the lender has been discharged to the purchasers solicitors. There is unlikely to be post completion tasks just for conveyancing in Shildon.
My wife and I own a 4 bedroom Georgian property in Shildon. Conveyancing lawyer represented me and The Royal Bank of Scotland. I did a free Land Registry search last week and I saw two entries: one for freehold, the second leasehold with the exact same address. I thought I was buying a freehold how can I check?
You need to read the Freehold register you have again and check the Charges Register as there may be mention of a lease. The best way to be sure that you are also the registered owner of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Shildon and other areas of the country and poses no real issues for owners other than when they remortgage they have to account for both freehold and leasehold interests when dealing with purchasers. You can also check the situation with the conveyancing solicitor who conducted the conveyancing.
Over the last few months I have been searching for a ground for flat up to £235,500 and found one close by in Shildon I like with amenity areas and transport links in the vicinity, however it's only got 52 remaining years left on the lease. There is not much else in Shildon for this price, so just wondered if I would be making a grave error buying a short lease?
If you require a home loan that many years will likely be problematic. Discount the offer by the expected lease extension will cost if not already taken into account. If the existing proprietor has owned the property for at least twenty four months you can request that they commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the existing lease term with a zero ground rent applied. You should speak to your conveyancing solicitor about this matter.
I am tempted by the attractive purchase price for a two maisonettes in Shildon which have about 50 years left on the leases. Should I regard a short lease as a deal breaker?
There is no doubt about it. A leasehold apartment in Shildon is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it adversely affects the salability of the property. For most buyers and banks, leases with less than 75 years become less and less attractive. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Shildon conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Leasehold Conveyancing in Shildon - A selection of Queries before Purchasing
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Is there a share of the freehold? Its a good idea to discover as much as possible concerning the managing agents as they will either make living at the property much simpler or uncomfortable. Being a leasehold owner you will be at the mercy of the managing agents both financially and when it comes to daily matters like the cleanliness of the common parts. Don't be shy to ask other tenants what they think of their management. On a final note, investigate as to the dates that you are obliged pay the service charge to the managing agents and specifically what it includes.