I am nearing exchange of contracts for my ground floor flat in Stamford and the EA has just called to warn that the buyers are swapping law firm. I am told that this is due to the fact that the lender will only engage with solicitors on their conveyancing panel. On what basis would a major lender only work with certain lawyers rather the firm that they want to select for their conveyancing in Stamford ?
UK lenders have always had panels of law firms that can represent them, but in the past few years big names such as HSBC, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 25 years.
Mortgage companies blame a rise in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to monitor. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Plenty of firms do not even realise 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.
The sellers of the property we are looking to purchase have appointed a conveyancing practitioner in Stamford who has suggested a preliminary contract with a non-refundable deposit two thousand pounds. Are such agreements sensible?
There are a couple of primary downsides with executing a lock out contract (sometimes referred to as a shut-out contract) is that it takes away the focus from making progress with the conveyancing process, so in the absence of it needing minimal or no negotiation then it may turn out to be a hindrance. It is not strongly advocated amongst Stamford conveyancing lawyers for this reason. The other main concern is the extent of the remedies available - an aggrieved purchaser should not expect to obtain an injunction to bar the vendor disposing of the property to another buyer, so the only remedy open via the contract will be the recovery of abortive charges and, in restricted situations, the extra payment of penalties.
A colleague recommended that if I am purchasing in Stamford I should ask my conveyancer to carry out a Neighbourhood, Planning and Local Amenity Search. What does it cover?
This is a search is usually quoted for as part of the standard Stamford conveyancing searches. It is a large document of more than thirty pages, listing and detailing important information about Stamford around the property and the people living there. It incorporates an Aerial Photograph, Planning Applications, Land Use, Mobile Phone Masts, Rights of Way, the Stamford Housing Market, Council Tax Banding, the demographics of People living in the area, the dominant type of Housing, the Average House Prices, Crime details, Local Education with plans and statistics, Local Amenities and other useful information regarding Stamford.
The estate agent has sent us the confirmation of our purchase of a new build flat in Stamford. Conveyancing is a frightening process at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build conveyancing.
Set out below are examples of a few leasehold new build questions that you may expect your new-build leasehold conveyancing in Stamford
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Will the freehold then be transferred for a nominal consideration (not exceeding £100) to the Management Company? Where there is an Undertaking being granted there is the risk of forfeiture of the Headlease subject to relief if one or more of the Underlessees are willing to accept the original Head Lessee’s obligations as otherwise relief will be denied to the Underlessees. The only alternatives are the Head Lessor agreeing not to forfeit the Headlease or the Head Lessee guaranteeing to the Underlessees that it will not be in breach of the Headlease. Please provide evidence that the form of Lease proposed has been approved by the Land Registry. Please confirm the Lease plans are architect prepared. Will control of the Management Company (if any) be handed over to purchasers on completion of the last sale or earlier?
Are there frequently found deficiencies that you come across in leases for Stamford properties?
Leasehold conveyancing in Stamford is not unique. Most leases are drafted differently and legal mistakes in the legal wording can result in certain clauses are wrong. For example, if your lease is missing any of the following, it could be defective:
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Maintenance charge proportions which don’t add up to the correct percentage Repairing obligations to or maintain elements of the premises
You will have difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Santander, Coventry Building Society, and Bank of Ireland all have very detailed requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to grant the mortgage, forcing the purchaser to withdraw.
Leasehold Conveyancing in Stamford - Sample of Queries before buying
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Who are the managing agents? What prohibitions exist in the Stamford Lease? It is important to be aware if fixing the lift or some other major work is coming up that will be shared between the leasehold owners and will dramatically impact the level of the service costs or result in a one off payment.
Online reading suggests that Stamford solicitors are more costly than Stamford conveyancers in Stamford to use when buying a house. So is it better if I use a conveyancer or a solicitor where I am buying for my home move in Stamford.
When it comes to conveyancing in Stamford the costs are unlikely to vary dramatically depending on whether the legal expert is a licenced conveyancer or solicitor.