Our god-son is in the process of securing a house that has just been built in Campden Hill with a mortgage from Principality. His conveyancer has advised him of a delay in completing the ‘Disclosure of Incentive Form’. This document is news to me - what is it and who needs sight of it?
The document is intended to provide information to the main parties involved in the transaction. Therefore, it will be provided to your son’s lawyer who should be on the Principality conveyancing panel as a standard part of the process, and to the valuer when requested. The developer will be required to start the process by downloading the form and completing it. The form will therefore need to be available for the valuer at the time of his or her site visit. The form should be sent to the Principality conveyancing panel solicitor as early as possible, in order to avoid any last minute delays, and no later than at exchange of contracts.
How does conveyancing in Campden Hill differ for new build properties?
Most buyers of new build residence in Campden Hill contact us having been asked by the builder to sign contracts and commit to the purchase even before the premises is completed. This is because house builders in Campden Hill tend to buy the real estate, 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 accustomed to new build conveyancing in Campden Hill or who has acted in the same development.
Due to the advice of my in-laws I had a survey completed on a house in Campden Hill prior to retaining conveyancers. I have been informed that there is a flying freehold aspect to the house. The surveyor has said that some lenders may not give a mortgage on a flying freehold property.
It varies from the lender to lender. Lloyds has different requirements for example to Nationwide. Should you wish to call us we can check with the relevant bank. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Campden Hill. Conveyancing will be smoother if you use a solicitor in Campden Hill especially if they are accustomed to such properties in Campden Hill.
My father-in-law has recommend that I appoint his conveyancers in Campden Hill. Should I find my own conveyancer?
No doubt the best way to find a conveyancing practitioner is to have recommendations from friends or relatives who have actually previously instructed the solicitor that you are are thinking of instructing.
I am tempted by the attractive purchase price for a couple of apartments in Campden Hill which have in the region of 50 years unexpired on the lease term. should I be concerned?
There is no doubt about it. A leasehold flat in Campden Hill is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to its expiry date, the more it adversely affects the salability of the premises. For most buyers and mortgage companies, leases with less than 75 years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of premises with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Campden Hill conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Following years of dialogue we are unable to agree with our landlord on how much the lease extension should cost for our flat in Campden Hill. Can we issue an application to the Residential Property Tribunal Service?
Where there is a missing landlord or if there is disagreement about the premium for a lease extension, under the relevant statutes you can apply to the Leasehold Valuation Tribunal to arrive at the amount due.
An example of a Lease Extension decision for a Campden Hill property is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.