I am only a couple days away from an exchange on a flat in Knightsbridge and my parents have sent the ten percent deposit to my conveyancing practitioner. I am now told that as the deposit has been received from someone other than me my conveyancing practitioner needs to disclose this to my lender. Apparently, in also acting for the bank he must inform them that the balance of the purchase price is not just from me. I advised the mortgage company regarding my parents' contribution when I applied for the home loan, so is it really appropriate for this now to be an issue?
The solicitor is obliged to clarify with lender to ensure that they know that the balance of the purchase price is not from your own resources. Your solicitor can only report this to your mortgage company if you agree, failing which, your lawyer must cease to continue acting.
We wanted to use a conveyancing solicitor in Knightsbridge for our house purchase. Our broker has since advised us that our mortgage company Nottingham Building Society won't deal with them. Why is this not regarded as unfair competition?
Banks ordinarily imposes restrictions either the category or the number of conveyancing practices on their panel. Typical examples of such criteria being that a firm must have two or more partners. As well as restricting the profile of firm, some have decided to limit the amount of firms they permit to represent them. Be aware that Nottingham Building Society have no responsibility for the quality of advice provided by any member of Nottingham Building Society Conveyancer Panel. Mortgage fraud was a primary driver in the reduction of solicitor panels a few years ago even though there remains differing views about the level of solicitor involvement in some of that fraud. Data from the Land Registry indicate that hundreds of law firms, including some in or near Knightsbridge only conduct one or two conveyances per annum.
Various internet forums that I have frequented warn that are a common reason for stalling in Knightsbridge house deals. Is that correct?
The Council of Property Search Organisations (CoPSO) published determinations of a review by MoveWithUs that conveyancing searches do not feature amongst the most frequent causes of hindrances during the legal transfer of property. Searches are unlikely to be the root cause of slowing down conveyancing in Knightsbridge.
How does conveyancing in Knightsbridge differ for newly converted properties?
Most buyers of new build or newly converted property in Knightsbridge approach us having been asked by the seller to exchange contracts and commit to the purchase even before the property is completed. This is because developers in Knightsbridge usually buy the land, 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 accustomed to new build conveyancing in Knightsbridge or who has acted in the same development.
Do you have any top tips for leasehold conveyancing in Knightsbridge from the perspective of saving time on the sale process?
- A significant proportion of the delay in leasehold conveyancing in Knightsbridge can be reduced where you appoint lawyers as soon as your agents start advertising the property and ask them to put together the leasehold documentation needed by the buyers’ solicitors. Many freeholders or Management Companies in Knightsbridge levy fees for supplying management packs for a leasehold property. You or your lawyers should discover the actual amount of the charges. The management pack sought as soon as you have a buyer, thus accelerating the process. The average time it takes to obtain the necessary information is three weeks. It is the most usual cause of delay in leasehold conveyancing in Knightsbridge. Some Knightsbridge leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, it would be prudent to notify your estate agents to make sure that the purchasers put in hand bank and professional references. The bank reference should make it clear that the buyer is able to meet the annual service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the purchasers or their solicitors. In the event that you altered the property did you need the Landlord’s consent? In particular have you laid down wooden flooring? Most leases in Knightsbridge state that internal structural alterations or addition of wooden flooring require a licence issued by the Landlord approving such works. Should you dont have the approvals in place do not communicate with the landlord without checking with your conveyancer in the first instance.
I have attempted and failed to negotiate with my landlord for a lease extension without success. Can the Leasehold Valuation Tribunal decide on such issues? Can you recommend a Knightsbridge conveyancing firm to represent me?
You certainly can. We can put you in touch with a Knightsbridge conveyancing firm who can help.
An example of a Lease Extension case for a Knightsbridge property is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case related to 1 flat. The unexpired term was 13.33 years.
Should I stop my mortgage payments with Clydesdale as soon as a completion date for my home sale in Knightsbridge has been agreed?
No, you should continue paying any mortgage sums to Clydesdale pending the mortgage being repaid from the proceeds of sale as part of your Knightsbridge conveyancing.