ASK ROSS: No two houses are the same, so consequently the conveyancing process will differ too. This month, Ross explains some of the practical issues that can arise…
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
My house is leasehold and I am interested in buying the freehold. Can I insist on doing so?
The Leasehold Reform Act 1967 gives many owners of leasehold properties the right to buy the freehold interest or to take an extended lease for an additional 50 years.
The purchase price can be negotiated between you and your landlord, but failing agreement, an application to the Lands Tribunal will provide a value.
In addition to the cost of the purchase, you will normally have to pay the leaseholder’s legal fees together with your own. Because of the sums involved, many tenants with a fixed ground rent on a long lease – perhaps of several hundred years – never buy the freehold. If, however, your lease has less than 70 years to run, it would be a prudent purchase, making the property more desirable should you decide to sell.
To get the ball rolling, you should ask if your landlord is prepared to sell the freehold and if so, on what terms. If an agreement cannot be reached, a solicitor can prepare statutory notices to force the issue, but you must normally have owned your house for at least two years.
I am currently buying a house with a large extension. How can I check planning permission was granted?
Information about planning permission is revealed in the searches carried out by your solicitor.
They will normally show whether any planning permission was granted for the property you are buying in the last 25 years or so. Alternatively, you may wish to telephone the planning department at the local council who should be able to advise you from their records. Obtaining a copy of the planning permission will be necessary if any conditions were imposed, so you can make sure they were met.
Your solicitor will also explain the need for building regulation approval, which is required on many extensions, in addition to planning permission. The building control section of your local council will confirm if building regulation approval was necessary and whether it was obtained at the time the extension was built.
My solicitor has asked me to sign a mortgage deed – what does this mean?
When you are buying a house with a mortgage from a bank or building society, your lender will send a standard deed to your solicitor prior to completion.
Your solicitor will explain the contents and effects of signing a mortgage deed, as it gives the lender the right to sell your property if you default on repayments. It is also likely to contain, or refer to, a number of conditions, for example, you may be prohibited from renting the property without consent.
Once your purchase is concluded, the mortgage deed will be recorded with the Land Registry. There will normally be another deed to sign as well, transferring ownership from the vendor to you.
What shall I do with the keys when I sell my house?
On completion, your buyer is entitled to possession of the house and keys must be handed over.
You can leave them with your estate agent who, once the purchase money has been received, will be authorised by your solicitor to release them to your buyer. Alternatively, you can hand over the keys directly. The danger in doing this is that the physical move becomes divorced from the financial completion. It could be that you allow the buyer to move in, only to find there is a problem and your solicitor has not received the money.
If you want to hand keys over yourself, I would recommend telephoning your solicitor on the morning of completion to ensure funds have been received.
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