I purchased a freehold residence in Victoria but nevertheless charged rent, why is this and what is this?
It’s unusual for properties in Victoria and has limited impact for conveyancing in Victoria but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges have existed for hundreds of years, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence after 2037 will be dispensed with completely.
Is it necessary during the course of the conveyancing process to pop into the offices of the solicitor to execute the legal charge? If so, I will instruct a firm who offer conveyancing in Victoria so that I can pop in to their offices if necessary.
As opposed to ten years ago, almost all mortgage companies no longer oblige their conveyancing panel lawyer to witness the borrowers signature. It will still be necessary for you to supply ID documents and there are still distinct advantages to using a local solicitor, in your situation a conveyancing solicitor in Victoria.
We are close to exchanging contracts on the sale of our house in Victoria and according to the buyers it appears that there is a risk of it being constructed on contaminated land. A local lawyer would know this is not the case. It does beg the question why the buyers instructed a national conveyancing outfit as opposed to a conveyancing solicitor in Victoria. Having lived in Victoria for six years we know that this is a non issue. Should we get in touch with our local Authority to obtain confirmation that there is no issue.
It would appear that you have a conveyancing lawyer already. What do they say? You must check with your lawyer before you do anything. It is very possible that once the local authority has been informed of a potential issue it cannot be insured against (a bit like being diagnosed with a serious illness and then taking out health insurance to cover that same sickness)
How does conveyancing in Victoria differ for newly converted properties?
Most buyers of new build premises in Victoria come to us having been asked by the seller to sign contracts and commit to the purchase even before the premises is ready to move into. This is because house builders in Victoria typically purchase the site, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct conveyancers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in Victoria or who has acted in the same development.
I've recently found out that there is a flying freehold element on a property I have offered on last month in what was supposed to be a quick, chain free conveyancing. Victoria is where the house is located. Can you offer any advice?
Flying freeholds in Victoria are not the norm but are more likely to exist in relation to terraced houses. Even though you don't necessarily need a conveyancing solicitor in Victoria you must be sure that your lawyer goes 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 Victoria 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 property.
How and when do I pay the Stamp Duty Land Tax chargeable for my Victoria property purchase?
Your lawyer will complete a stamp duty return on your behalf as part of your Victoria conveyancing transaction for you to sign. After completion your lawyer will submit your STL Return Form to the Tax Authorities and - assuming they have the funds - pay any tax bill liability on your behalf.