Is there a reason why leasehold purchase conveyancing in Leatherhead is more expensive?
In short, leasehold conveyancing in Leatherhead and elsewhere usually involve additional due diligence compared to freehold transactions. This includes checking the lease terms, liaising with the landlord about the service of applicable notices, securing up-to-date service charge and management information, securing the freeholder’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – regardless of the fact the lease has passed through many different property solicitors hands since it was first entered into.
We decided to purchase a 1 bedroom apartment in Leatherhead with a residential mortgage from Alliance & Leicester .We like our Leatherhead conveyancing solicitor but Alliance & Leicester advised that her practice is not on their approved list of firms. We have to appoint a Alliance & Leicester panel solicitor or keep our high street solicitor and fork out for one of their panel ones to act for them. This seems very unfair; is there anything we can do?
No, not really. The loan offered to you contains terms and conditions, one of which will be that solicitors must be on the Alliance & Leicester solicitor panel. Until recently, most lenders had large numbers of solicitors on their panels: a borrower could find one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. Another option that might be available is for your solicitors to apply to be on the conveyancing panel for Alliance & Leicester
A colleague informed me that in buying a property in Leatherhead there may be various restrictions prohibiting external changes to a property. Is this right?
We are aware of a number of properties in Leatherhead which have some sort of restriction or requirement of consent to external variations. Part of the conveyancing in Leatherhead should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
Can you help - my lawyer advises that restrictive coveneant insurance is necessary on my purchase. What is the level of cover for Leatherhead conveyancing?
The right level of restrictive coveneant indemnity insurance should be dictated by who your lender. It would differ for example between Accord Mortgages Ltd and Norwich and Peterborough Building Society. Conveyancing solicitors as opposed to members of the public take out such insurances.
It is unclear whether my mortgage offer requires a lease extension. I have called into my local Leatherhead building society branch on a couple of occasions and was advised it wasn't a problem and they will lend. My Leatherhead conveyancing solicitor - who is on the lender conveyancing panel- telephoned and was told they refuse to lend based on their UK Finance Lenders’ Handbook minimum lease term requirements. Who do I believe?
Your solicitor has to comply with the Council of Mortgage Lenders’ Handbook Part 2 requirements for your bank. Unless your lawyer obtains specific confirmation in writing that the mortgage company will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the bank to contact your lawyer in writing confirming that they will accept the number of years remaining.
I'm buying a new build house in Leatherhead benefiting from help to buy. The builders would not move on the price so I negotiated £7000 of extras instead. The house builders rep suggested that I not reveal to my lawyer about this extras as it may adversely affect my mortgage with the bank. Is this normal?.
All lenders require a Disclosure of Incentives Form from the builder of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
My step-son is about to join the property ladder, the home loan was agreed last week in principle. One the offer was accepted on flat we rang the lender to issue the formal offer. I was disappointed to learn that mortgage companies do not accept all conveyancing practitioner, they have to be on a list, is this correct?
Lenders ordinarily restrict either the type or the number of conveyancing practices on their panel. A common example of such restriction(s) being that a firm must have two or more partners. In addition to restricting the type of firm, some have decided to limit the number of firms they use to represent them. You should note that banks have no responsibility for the quality of advice provided by any Leatherhead solicitor on their panel. Mortgage fraud was a key driver in the rationalisation of conveyancing panels a few years ago and whilst there are differing views about the extent of solicitor involvement in some of that fraud. Statistics from the Land Registry reveal that thousands of law firms only carry out one or two conveyances a year. Those supporting conveyancing panel cuts ask why law firms should have the right to be on a Lender panel when clearly, conveyancing is not their speciality. To put it another way; would you want a conveyancing solicitor to represent you if you were charged with a crime? Presumably not.