I am not well enough to travel far from South Woodford. What is the rationale as to why all South Woodford conveyancing practitioners aren't included on all mortgage company panels?
Banks ordinarily restrict either the nature or volume of conveyancing practices on their approved list of lawyers. A common example of such criteria being that the practice is required to have two or more partners. As well as restricting the type of firm, some banks for example HSBC made a decision to limit the number of practices they allow to represent them. It is worth noting that banks have no responsibility for the standard of conveyancing given by any South Woodford conveyancer on their approved list. Property fraud was the key driver in the rationalisation of conveyancing panels from 2008 notwithstanding that there are differing points of view about whether solicitors sat at the center of that fraud. Statistics published by HM Land Registry reveal that thousands of law firms only carry out one or two conveyances a year. Those advocating conveyancing panel consolidation ask why law firms should have claim to be on a lender panel when it is evident that conveyancing is not their speciality?
In the event thatI were to acquire a straightforward housein South Woodford for cash and dispense with a survey and no conveyancing searches how much could I expect to have to pay for conveyancing in South Woodford?
The sole reduction in fees you would achieve is the South Woodford conveyancing searches. The solicitor is required to do the vast majority of work - money laundering, correspond with the sellers solicitor, SDLT submission, register the ownership etc. A marginal saving might be made by not having to register a charge but it won't be meaningful.
As someone not used to conveyancing in South Woodford what is your top tip you can impart concerning the home moving process in South Woodford
Not many law firms or advisers will tell you this but conveyancing in South Woodford and elsewhere in North East London is an adversarial process. In other words, when it comes to conveyancing there exists plenty of room for friction between you and others involved in the transaction. For instance, the seller, selling agent and sometimes your bank. Selecting a lawyer for your conveyancing in South Woodford is a critical decision as your conveyancer is your adviser, and is the ONLY person in the legal process whose role it is to protect your best interests and to keep you safe.
We are witnessing a definite increase of a "blame" culture- someone must be at fault for the process taking so long. You your first instinct should be to trust your conveyancer above all other players when it comes to the legal assignment of property.
About to place an offer on a leasehold property in South Woodford. The property agents say that it is standard for flats in South Woodford to have less than 75 years remaining. I am obtaining a loan with The Mortgage Works. Will the property be mortgageable given that the lease has Seventy One years unexpired.
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 18/3/2023 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 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 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 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 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
I got the keys to my flat on 8 July and the transaction details is yet to be on the land registry website. Need I be worried? My conveyancing solicitor in South Woodford expressed confidence that it would be registered in less than a month. Are titles in South Woodford particularly slow to register?
As far as conveyancing in South Woodford registration is no quicker or slower than the rest of the country. As opposed to being determined by geographic area, timescales can adjust depending on who lodges the application, whether it is in order and whether the Land registry must send notices to any third persons or bodies. Currently approximately 80% of such applications are fully addressed within 12 days but some can be subject to longer delays. Historically registration takes place once the purchaser has moved in to the property therefore post completion formalities is not usually primary concern but if there is a degree of urgency associated with the registration then you or your conveyancer could speak with the land registry and explain the circumstances.
I have just started marketing my garden flat in South Woodford. Conveyancing has not commenced, however I have just received a yearly service charge demand – Do I pay up?
The sensible thing to do is discharge the maintenance contribution as you normally would because all rents and maintenance invoices should be allotted on completion, so you should recover the relevant percentage by the buyer for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer until the service charges have been paid and are up to date, so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.
I have given up trying to reach an agreement for a lease extension in South Woodford. Can the Leasehold Valuation Tribunal adjudicate on premiums?
Most definitely. We can put you in touch with a South Woodford conveyancing firm who can help.
An example of a Lease Extension case for a South Woodford property is 135 Maybank Road in January 2013. The Tribunal determined that the price to be paid by the tenants for the grant of a new lease is £10,592 This case related to 1 flat. The remaining number of years on the lease was 71.2 years.