I am selling my house in Stroud and the estate agent has just e-mailed to advise that the buyers are appointing a new law firm. The excuse is that the lender will only deal with property lawyers on their approved list. On what basis would a big named mortgage company only work with certain solicitors rather the firm that they want to choose to handle their conveyancing in Stroud ?
Mortgage companies have always had an approved set of law firms they are content to work with, but in the past few years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for many years.
Banks justify this action to a rise in fraud as the reason for the reduction – criteria have been stiffened as a smaller panel is easier to maintain. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices 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. The purchasers are not going to have any sway in the decision.
I am purchasing a brand new flat in Stroud and my solicitor is informing me that she is duty bound to the lender to disclose incentives from the builder. I am nearing the developer’s deadline to sign contracts and I would rather not prolong deal. is my lawyer playing by the book?
You should not exchange unless you have been advised to do so by your conveyancer. A precondition to being on a lender panel is to comply with the UK Finance Lenders’ Handbook specifications. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
I own a 4 bedroom Georgian property in Stroud. Conveyancing practitioner acted for me and Platform Home Loans Ltd. 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. If a house is not a freehold shouldn't I have been informed?
You need to read the Freehold register you have again and check the Charges Register for 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 Stroud and other locations in the country and poses no real issues for owners other than when they sell they have to account for both freehold and leasehold interests when dealing with purchasers. You can also enquire as to the situation with your conveyancing lawyer who conducted the conveyancing.
I've recently found out that there is a flying freehold issue on a house I put an offer in two weeks back in what should have been a straight forward, chain free conveyancing. Stroud is the location of the property. What do you suggest?
Flying freeholds in Stroud are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Stroud you would need to get your solicitor to go through the deeds very carefully. Your bank may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Stroud may ascertain that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold premises.
I was recommended by a couple of local selling agents in Stroud to locate a solicitor on your site. What’s the financial incentive for Estate Agents to recommend your services ahead of another?
We don’t give any financial incentive for directing people to this site. We thought it would be too underhand a fee as home movers will think, ‘Why is the agent getting a kickback? Why aren’t I getting any benefit too?’ We would prefer to grow our business on genuine recommendations.
Back In 2003, I bought a leasehold house in Stroud. Conveyancing and Accord Mortgages Ltd mortgage organised. I have received a letter from someone claiming to own the freehold. Attached was a demand for arrears of ground rent dating back to 1993. The conveyancing practitioner in Stroud who previously acted has now retired. What should I do?
The first thing you should do is make enquiries of HMLR to be sure that the individual purporting to own the freehold is indeed the new freeholder. You do not need to incur the fees of a Stroud conveyancing firm to do this as you can do this on the Land Registry website for a few pound. You should note that in any event, even if this is the legitimate landlord, under the Limitation Act 1980 no more than 6 years of rent can be collected.
Leasehold Conveyancing in Stroud - Sample of Queries before Purchasing
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It would be sensible to find out as much as you can regarding the company managing the building as they will either make your living at the property much easier or a lot more difficult. As the owner of a leasehold property you are often at the mercy of the managing agents both financially and when it comes to every day matters like the upkeep of the common parts. Enquire of prospective neighbours what they think of their service. Finally, investigate as to the dates that you are obliged pay the maintenance charge to the managing agents and specifically what you get for your money. Most Stroud leasehold properties will have a service charge for maintenance of the block invoiced by the management company. If you buy the property you will have to meet this charge, normally in instalments during the year. This can differ from a couple of hundred pounds to thousands of pounds for buildings with lifts and large common areas. In all likelihood there will be a ground rent for you to pay annual, this is usually not a exorbitant figure, say approximately £50-£100 but you need to enquire it because occasionally it could be surprisingly expensive. Where a Stroud lease has no more than 80 years it will affect the marketability of the property. Check with your lender that they are willing to go ahead with the loan given the lease term. A short lease means that you will almost definitely need a lease extension at some point and you need to have some idea of what this would cost. For most Stroudlease extensions you would be required to have been the owner of the premises for a couple of years before you are eligible to exercise a lease extension.