Are you able to recommend a Godiva Mortgages Ltd sanctioned Teignmouth conveyancing practice that can complete within two weeks? Would it be better to use a local Teignmouth solicitor or an online comparison site?
We can recommend some very good Teignmouth conveyancing firms. Another option is to visit the high street in Teignmouth. Go in to two or three firms and request to speak with a conveyancing solicitor for a costs illustration. Discuss your requirements together with your reasons and get an assurance on speed. Choose the lawyer that appears most efficient.
About to place a bid on a leasehold property in Teignmouth. The selling agents advise that it is usual for flats in Teignmouth to have less than 75 years remaining. I am taking out a mortgage with The Mortgage Works. Will the property be mortgageable given that the lease has Seventy One years to go.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are getting 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 14/1/2021 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 Originations (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 Originations (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 Originations):
- 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 Originations (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
- Starting Ground Rent greater than 0.1% of the property value
- Ground Rent review period less than or equal to 5 years
- 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
Refer to Originations (Valuer will consider any impact on valuation figure and marketability):
- Ground Rent is linked to any indices greater than RPI
- Ground Rent is linked to the value of the building*
- 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 Originations):
- 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
- Starting Ground Rent less than or equal to 0.1% of the property value
- Ground Rent review period greater than 5 years
- Ground Rent escalation less than or equal to RPI
* 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
I have been on the look out for a leasehold apartment up to £305k and found one close by in Teignmouth I like with open areas and station in the vicinity, however it's only got 61 years unexpired on the lease. There is not much else in Teignmouth in this price bracket, so just wondered if I would be making a mistake acquiring a lease with such few years left?
Should you need a home loan the shortness of the lease will be a potential deal breaker. Reduce the price by the anticipated lease extension will cost if not already taken into account. If the existing proprietor has owned the property for a minimum of twenty four months 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 existing lease and have £0 ground rent by law. You should consult your conveyancing solicitor concerning this.
I am selling my property. My former solicitors has retired. I am in need of a recommendation of a conveyancing firm. I happen to live in Teignmouth if that makes things easier.
You should use our search tool to help you choose a solicitor for your conveyancing in Teignmouth. We have connected thousands of home buyers and sellers with lender approved solicitors to ensure that the legalities of their house move runs smoothly.
What advice can you give us when it comes to appointing a Teignmouth conveyancing firm to deal with our lease extension?
If you are instructing a property lawyer for lease extension works (regardless if they are a Teignmouth conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you make enquires with several firms including non Teignmouth conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. The following questions could be useful:
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How experienced is the practice with lease extension legislation? If they are not ALEP accredited then what is the reason?
Teignmouth Leasehold Conveyancing - Sample of Questions you should consider before buying
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The answer will be important as a) areas can result in problems in the building as the common areas may begin to deteriorate where maintenance remain unpaid b) if the tenants have a dispute with the running of the building you will need to have full disclosure How many of the leaseholders are in arrears for their service charge payments? What is the length of the lease?
We had our home loan approved yesterday with our lender. We are using a high street conveyancer in Teignmouth yesterday. This morning, our mortgage adviser contacted us saying that the bank said that we cannot use our solicitor as they aren't on their panel. As FTB's, we had no idea that the bank had some control over our choice Is this permitted?
You can actually use any property lawyer you prefer to appoint including the said conveyancer in Teignmouth but if they are not on the your bank's panel you will have to incur an extra fee so your bank can instruct their own solicitors as well to protect their interest. It may be conceivable that your solicitor may apply to get included on to the mortgage company panel. You can use web-based search facilities including lenderpanel.com to find a conveyancing solcitor in Teignmouth on the bank panel. You can go into your local bank branch in Teignmouth. They can recommend conveyancing solicitors in Teignmouth on the panel for your bank.