Bradford and Bingley is going to be our lender - what will I need to consider?
When purchasing with a mortgage, your lender will require legal work to be carried out on their behalf. Some lenders have reduced their 'solicitor panel'. For buyers, this can result in significantly greater conveyancing costs. Homeward Legal, however, are able to act for the majority of mortgage lenders.
Should I get my short lease extended before selling?
Buyers are becoming increasingly wary of buying leaseholds with less than 90 years to run because, first, the cost of increasing a leasehold is becoming far more expensive, and, second, mortgage companies are becoming increasingly reticent to lend money to buy leases that have dropped below the 80-year mark (indeed, this will be one of the criteria that they set to ensure their investment is protected).
As a result, buyers will often insist that the leasehold be extended back up to the 99-year or 125-year typical thresholds before going ahead and buying it. So, as the current leaseholder, you will almost certainly be expected to do the legal work required to extend the lease to a level that buyers will be happy with.
Will I need a chancel search? I am purchasing a apartment in Fulwood.
The judgement in a landmark case in 2003 confirmed that chancel repair liability could be enforced. A chancel search is used to confirm whether such a liability exists. Liability is more common in some parts of the country. The solicitor carrying out the legal work for your move will confirm that a chancel search is appropriate. Fulwood church properties include Christ Church, Christ Church, St Martin and St Peter.
What is stamp duty and land transaction tax?
Stamp Duty Land Tax (SDLT) is a proportion of the final sale price of a property payable to HMRC by the buyer. The current trigger threshold is for any property priced at £125,000 or over (unless you’re a first-time buyer, in which case you pay less or no tax for properties priced at less than £500,000). Your solicitor will handle the transfer of the tax as part of the final tasks on your conveyancing.
In Scotland, buyers have to pay Land and Buildings Transaction Tax and, in Wales, the Land Transaction Tax is triggered at properties priced over £180,000.
In all cases, the amount payable is based on a sliding scale as the price goes up as a proportion of that range added together than an overall flat tax amount or percentage. So, the higher the price goes up, the greater the amount of tax you have to pay.
We have taken out a quote from you. Could there be any extra charges?
No. We do not hide any hidden charges. Some solicitors' firms will give a low estimate, not an accurate quote, which they will not be required to adhere to.