FAQs about Residential Conveyancing

I have a relative, over 18, who is not buying the property with me but my Lender insists on Deed of Postponement. What is this ?

If an adult permanently resides at the property with you, but is not on the legal title and has not signed the mortgage deed, it will be difficult, under general law for the Lender to evict him if you default  on the mortgage. The Lender, therefore, requires such an non-owning occupier to sign a Deed of Postponement to state that he or she is aware that you purchased the property with the aid of a mortgage and that should you fail to make the repayments and you are evicted, he or she will leave the property with you and have no legal right over and above the Lenders right.

A Lender will not give a mortgage advance until a Deed of Postponement has been signed by a non-owning adult occupier. All Lenders are keen to ensure that any occupier receives independent legal advice on this particular issue.

What is included in a draft contract package ?

The pack will normally include:

  • copies of the Land Registry entries (or if the title is unregistered, a set of copies of previous deeds showing a chain of ownership going back the necessary number of years.)
  • the Seller’s Property Information Form
  • if the property is a leasehold flat, a copy of the lease, and a Leasehold Information Form giving more information about leasehold matters, together with up-to-date information from the freeholder or managing agents
  • the Fixtures, Fittings & Contents List

Lease Extension – How long does the lease extension process take?

If you are looking to sell your flat and want to quickly extend your lease through a formal Claim under the 1993 Leasehold Reform, Housing and Urban Development Act, you will be disappointed – the process is neither quick or easy, and can take up to 18 months if the issue is fully contested. The good news is that most extensions are ultimately agreed by consent as the parameters available to the freeholder for negotiating are limited, and a reasonable tactical offer can often result in extension by consent. In any event, you can start the formal claim process and then assign (transfer) your rights to the buyer, who then does not have to wait for the 2 year ownership qualification period.

Will I still have to pay ground rent after extending a lease ?

The ground rent should be reduced to a peppercorn meaning that no ground rent should be payable for the whole of the term (e.g. the 90 years plus the present unexpired term).

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