ASK ROSS: Guarantees, permissions, clauses – the checks made when you buy a house seem endless. This month Ross looks at some of the reasons it is so important to have a solicitor safeguarding your interests…
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
I am buying a new property from a local builder. How can I be sure the site has planning permission?
When a new house is erected, it normally requires planning permission and building regulation approval. The builder’s solicitor will forward copies of both documents before contracts are exchanged. This gives your solicitor a chance to check if any conditions were imposed by the authorities and if so, to include a clause in the contract requiring the developer to comply with any prerequisites of the planning permission or building regulation approval.
Your solicitor is also likely to require a Building Regulation Completion Certificate from the builder, which is issued by the local council to confirm the work meets the approval that was granted.
In addition, you will need to check there is a National House Building Council (NHBC) certificate, or a certificate provided by the builder’s architect endorsing the work and demonstrating the property has been constructed to a satisfactory standard.
I am buying a house currently occupied by tenants. How can I be sure they will have moved out by the time the purchase is complete?
The contract sent to your solicitor by the vendor’s solicitor will state that you will receive vacant possession on completion and your solicitor will confirm this to you. If this is not to be the case, the contract must include a clause noting the sale is subject to the tenancy.
If the contract provides for vacant possession and the tenant does not leave before you complete, the vendor will be in breach of contract and penalties will apply.
It is unlikely the vendor will exchange contracts with you unless they are confident the tenant will have vacated by the date you both agree for completion.
My property is leasehold and I understand I may have the right to buy the freehold. Is this correct?
If you live in a house you can, under the Leasehold Reform Act 1967, either buy out your landlord’s freehold interest, or extend your lease for another 50 years. To qualify, your lease normally has to have more than 21 years remaining and you must have owned the property for two years.
Initially, you may wish to find out if your landlord is willing to sell the freehold interest to you and if so, on what terms. If you do not receive a response, a solicitor can serve a notice under the Leasehold Reform Act indicating your intention to buy the freehold. You will then need to agree a price, but if this cannot be achieved, the Lands Tribunal will determine the value.
In my experience of buying freeholds in Sheffield, these matters are usually resolved directly. It is worth noting that you will have to pay the landlord’s costs, particularly any legal fees incurred in proving ownership and preparation of the purchase deed.
I have assumed your property is a house, as the rules relating to flats and apartments are not the same. Tenants do have a right to collectively acquire the freehold for their block, although the process is completely different. Visit our specialist property management blog for more details.
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