UK Property Conveyancing Search Part 1

Good afternoon everyone.

Well as promised I am now going to post a series covering some of the searches carried out during the process of buying or selling a UK Property and surprise surprise the first one is the Local Search sincet his is required in the Home Information Pack.

This search is either an official one meaning that the information comes direct from the local authority or a personal one which means that the data is not as detailed and generally not acceptable for a buyers lawyers.

So for the purposes of this post I will be talking only about the official search.

While its name appears to give the impression that it covers the locality in which the property is situated it in fact only provides information that is specific to the actual property being sold or purchased.

The Local Search does not give details of any planning matters likely to affect the property which relate to the neighbouring properties or are within the immediate vicinity.If you wish to satisfy yourself entirely regarding any of these mattersyou will have to contact the appropriate Local Authority and inspect their planning register. It is regrettable that the Local Search does not generally give details of any matters affecting adjoining properties-For example any application to extend the property -so if you have any specific query this can only be dealt with by way of a specific search undertaken on that property itself or, in turn, by enquiry of the Local Authority.

The example of items that may be revealed by a local search are set out below however this list is not exhaustive and invariably there is nothing untoward revealed .

(a) Whether or not the Road in which the proerty is situated is adopted by the Local Authority and if there any liability for road charges
(b) Whether the path at the rear/side of the property is adopted by the Local Authority or is maintainable by all who regularly use it.
(c) If there is a smoke control order in force for the area, which means you, must only burn smokeless fuel and comply with the relevant by-laws
(d) Is there any Tree Preservation Order in force for the area, and if so you must check with the Local Authority before any trees are lopped or felled in case planning permission is required.
(e) Is a Home Improvement Grant registered against the property, which will continue to be a charge on the property and will it need to be repaid whether or not the house continues to be used as a residential dwelling.
(f) Is the property within a conservation area or an area of special control . This is an area which has been defined as being of special architectural or historic interest the appearance of which the local authority wish to maintain. All planning applications for building within the area will be carefully considered to ensure that they harmonise and reinforce the character of the area. The demolition or partial demolition of a building within a conservation area requires special consent. If you plan to undertake any alterations to the property either now or in the future then you will be well advised to contact the Local Authority now to ensure that your proposals are likely to fall within the permitted level of development.

You can see that the level of information being obtained is quite detailed and as is always the case if you are concerned you must contact a specialist property lawyer who is trained to interpret the data and advise on its impact to you.

I hope you have found this of interest and I will cover next the position in respect of Drainage searches particularly as this is one of the required documents for the Home Information Pack

Reg

Repossessions and the UK Property Market

Well today this is a hot topic for conversations amongst lawyers as well as the property owners and the would be investor.

Why is there so much concern about the market and what is it that drives lenders to want to evict their customers from a home? In a word Greed.

Clearly there are winners and losers in this type of market. Invariably the lenders and investors will make gains while the homeowner will find not only that they are homeless but with a large debt still owing even after the property has been sold usually to an investor.

For the invester clearly now is a good time to enter the market as there are many very reasonably priced properties on the market and there are still mortgage deals to be obtained if you know where to look.

So what about the home Owner ? Even if you are in negative equity-where the property is worth less than the mortgage owed on it- it may still be sensible to stay continuing to pay the mortgage as if you give up you will still have rent to pay as well as retaining the balance of any mortgage debt. It is important that the property is not looked at as being an investment but rather it must be considered as a roof over your head and a home.

If you can no longer afford to stay in the property there are a number of organisations that are prepared to purchase-usually at a heavy discount-and allow you to remain in the property but paying a commercial rent. You will be wise to avoid entering into this type of arrangement without first discussing the various dangers and pitfalls with a specialist property lawyer as the conveyancing is complicated.

It is my view that the preferred option is to speak to your lender and renegotiate the terms of your mortgage so that sufficient time can pass to enable the UK Property market to recover.

I hope that you have found my comments helpful and in future posts I will be commenting on the various aspects of the conveyancing process.

Reg

Remotgaging Refinancing and Equity Loans

Good Afternoon everyone. I thought today in view of the UK Property Market that I say something about remortgaging or refinancing your property.

There are a number of reasons why you may wish to raise capital on your property or merely refinance the existing mortgage. I set out below a few examples however the list is not exhaustive and I am sure you will be able to think of many other ones.

(a) The present fixed rate term of your mortgage is due to expire
(b) You are selling or buying another property
(c) You have run up debt and wish to consolidate all your borrowing under one payment
(d) You wish to raise additional capital from your property perhaps to fund a new business venture or to have a holiday
(e) You are nearing retirement and need to raise additional money by way of an Equity release scheme
(f) You are acquiring an interest in a property held by your spouse or partner

Whatever your reason for refinancing your mortgage be it capital raising or conveyancing you must be careful to ensure that you receive the correct advice ensuring that your mortgage advisor is correctly registered with the Financial Services Authority and that the conveyancing relating to your proposed mortgage is carried out by a suitably qualified lawyer which will not necessarilly be a Solicitor as specialist property lawyers can also perform this work.

In the present climate it has become more difficult to obtain mortgages so a Broker who has the ability to research the whole of the refinancing and mortgage market may be a wise investment. If your mortgage is coming to an end do not leave it to the last minute as the conveyancing can take up to two months to be finalised although we as a firm guarantee to complete any remortgage or refinance within the month of the mortgage offer if our instructions from you and the lender are received no later than the 15th of the month.

Please Note that if you do not keep up repayments on your mortgage your home may be at risk.

I hope this has been of help and in my next posting I will talk about property repossesions and the reasonswhy this is happenning.

Reg