Our solicitor has identified a a legal deficiency with the lease for the flat we are buying in Bloxham. The seller’s lawyers have suggested defective title insurance as a workaround. We are content with insurance and will cover the costs. Our property lawyer has advised that he must check that the bank is content with this solution. Who is the client here, us or the mortgage company ?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the lender are the client. Your solicitor must comply with the UK Finance Lenders’ Handbook provisions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your lawyer will have no choice but to discontinue acting for you.
How does conveyancing in Bloxham differ for newly converted properties?
Most buyers of new build residence in Bloxham come to us having been asked by the developer to sign contracts and commit to the purchase even before the residence is finished. This is because new home sellers in Bloxham tend to acquire 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 property lawyers 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 Bloxham or who has acted in the same development.
What does commercial conveyancing in Bloxham cover?
Bloxham conveyancing for business premises incorporates a broad array of advice, provided by regulated solicitors, relating to business property. For instance, this type of conveyancing can cover the sale or purchase of freehold business premises or, more usually, the assignment of existing business tenancies or the drafting of new leasing arrangements. Commercial conveyancing solicitors can also offer advice on the sale of business assets, commercial mortgages and the termination of tenancies.
I work for a long established estate agency in Bloxham where we see a few flat sales put at risk as a result of short leases. I have been given inconsistent advice from local Bloxham conveyancing firms. Can you clarify whether the vendor of a flat can instigate the lease extension process for the purchaser on completion of the sale?
Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer can avoid having to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the sale.
Alternatively, it may be possible to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the purchaser.
I bought a 2 bed flat in Bloxham, conveyancing was carried out June 2001. How much will my lease extension cost? Corresponding properties in Bloxham with a long lease are worth £197,000. The ground rent is £55 charged once a year. The lease ends on 21st October 2081
With just 56 years unexpired we estimate the price of your lease extension to span between £29,500 and £34,000 plus costs.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. Do not use the figures in tribunal or court proceedings. There may be other concerns that need to be taken into account and you obviously should be as accurate as possible in your negotiations. You should not move forward placing reliance on this information without first getting professional advice.
The financial adviser has recommended their solicitor for our conveyancing in Bloxham - won’t it be advisable to just instruct them?
It is not always the case and you are at liberty to instruct whichever lawyer you prefer for your Bloxham home move. The conveyancer recommended by an estate agent may not always be the best conveyancing practitioner, they may put forward their preferred conveyancing firm who are based far away. In this instance you may not have contact with your conveyancer and due to the lack of continuity in the transaction, it may be difficult to obtain updates.