Our conveyancer has uncovered a defect with the lease for the apartment we are purchasing in Dunstable. The seller’s lawyers have put forward defective title insurance as a workaround. We are happy with insurance and will pay for it. Our property lawyer says that he must check that the bank is willing to move forward with this solution. Who is the client here, us or the lender?
Notwithstanding that you have a mortgage offer from the lender does not mean to say that the property will meet their provisions for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook conditions. You and the mortgage company are the client. The appropriate lender provisions must be adhered to.
My property lawyer in Dunstable is not on the Coventry Building Society Approved Panel. Can I still retain my family solicitor notwithstanding that they are excluded from the Coventry Building Society approved list?
The limited options open to you here include:
- Carry on with your preferred Dunstable lawyers but Coventry Building Society will need to use a conveyancer on their list of acceptable firms. This will result in additional overall legal fees as well as result in frustration.
- Find a new practitioner to to deal with the purchase, remembering to check they are Persuade your conveyancer to use their best endeavours to join the Coventry Building Society conveyancing panel
How does conveyancing in Dunstable differ for new build properties?
Most buyers of new build residence in Dunstable contact us having been asked by the developer to exchange contracts and commit to the purchase even before the premises is completed. This is because builders in Dunstable typically purchase 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 Dunstable or who has acted in the same development.
Over the last few months I have been searching for a leasehold apartment up to £245,000 and found one near me in Dunstable I like with a park and transport links nearby, however it only has 52 remaining years left on the lease. There is not much else in Dunstable suitable, so just wondered if I would be making a mistake purchasing a short lease?
Should you require a home loan the remaining unexpired lease term will likely be an issue. Reduce the offer by the anticipated lease extension will cost if it has not already been discounted. If the current owner has owned the property for at least 2 years you can request that they commence the lease extension formalities and then assign it to you. An additional ninety years can be extended on to the existing lease and have £0 ground rent by law. You should speak to your conveyancing solicitor concerning this.
I am tempted by the attractive purchase price for a couple of flats in Dunstable both have about fifty years left on the leases. Will this present a problem?
There are plenty of short leases in Dunstable. The lease is a legal document that entitles you to use the property for a period of time. As the lease shortens the marketability of the lease reduces and it becomes more costly to acquire a lease extension. This is why it is often a good idea to extend the lease term. It is often difficult to sell a property with a short lease as mortgage lenders less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We recommend you get professional help from a conveyancer and surveyor with experience in this arena.
I purchased a ground floor flat in Dunstable, conveyancing having been completed in 1995. How much will my lease extension cost? Corresponding flats in Dunstable with an extended lease are worth £202,000. The average or mid-range amount of ground rent is £55 levied per year. The lease runs out on 21st October 2081
With just 56 years remaining on your lease the likely cost is going to range between £29,500 and £34,000 plus costs.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of comprehensive due diligence. You should not use this information in a Notice of Claim or as an informal offer. There are no doubt additional concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information before getting professional advice.