I am 4 weeks into the sale of my maisonette in The Park and the estate agent has just telephoned to advise that the purchasers are swapping conveyancer. The reason given is that the bank will only engage with solicitors on their approved list. Why would a leading mortgage company only deal with certain solicitors rather the firm that they want to select to handle their conveyancing in The Park ?
Banks have always had an approved set of law firms that can act for them, but in the past few years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 15 years.
Lending institutions blame a rise in fraud as the reason for the reduction – criteria have been narrowed as a smaller panel is easier to monitor. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The buyers are not going to have any impact on this.
I own a freehold residence in The Park yet charged rent, why is this and what is this?
It’s unusual for properties in The Park and has limited impact for conveyancing in The Park 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 many centuries, but the Rent Charge Act 1977 barred the establishment of new rentcharges post 1977.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 is to be dispensed with completely.
Should our lawyer be making enquiries concerning flooding during the conveyancing in The Park.
The risk of flooding is if increasing concern for lawyers conducting conveyancing in The Park. Plenty of people will buy a house in The Park, fully expectant that at some time, it may be flooded. However, aside from the physical damage, where a house is at risk of flooding, it may be difficult to get a mortgage, suitable building insurance, or sell the premises. Steps can be carried out as part of the conveyancing process to forewarn the buyer.
Lawyers are not qualified to offer advice on flood risk, however there are a number of searches that can be carried out by the purchaser or on a buyer’s behalf which will give them a better appreciation of the risks in The Park. The conventional set of property information forms given to a buyer’s lawyer (where the solicitors are adopting what is known as the Conveyancing Protocol) includes a standard question of the owner to determine if the premises has ever been flooded. In the event that flooding has previously occurred and is not revealed by the seller, then a buyer may bring a claim for damages stemming from an incorrect response. A buyer’s lawyers should also carry out an enviro search. This should reveal if there is any known flood risk. If so, more detailed investigations should be made.
I decided to have a survey done on a property in The Park before appointing lawyers. I have been informed that there is a flying freehold element to the house. Our surveyor has said that some lenders may not give a mortgage on a flying freehold property.
It depends who your proposed lender is. Santander has different instructions for example to Nationwide. Should you wish to telephone us we can investigate further with the appropriate bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in The Park. Conveyancing will be smoother if you use a solicitor in The Park especially if they are familiar with such properties in The Park.
My step-father has encouraged me to instruct his conveyancers in The Park. Should I choose my own conveyancer?
Much as we are happy to recommend a The Park conveyancing lawyer the best way to select a conveyancing lawyer is to get recommendations from friends or family who have actually used the solicitor you're contemplating using.
Having had my offer accepted I require leasehold conveyancing in The Park. Before I set the wheels in motion I want to be sure as to the remaining lease term.
If the lease is recorded at the land registry - and most are in The Park - then the leasehold title will always include the short particulars of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title. For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
I inherited a garden flat in The Park, conveyancing formalities finalised in 2003. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Equivalent properties in The Park with over 90 years remaining are worth £191,000. The average or mid-range amount of ground rent is £55 levied per year. The lease finishes on 21st October 2079
With just 53 years left to run the likely cost is going to span between £27,600 and £31,800 plus professional fees.
The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you the actual costs in the absence of comprehensive due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt other concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. You should not take any other action based on this information without first seeking the advice of a professional.