Buying A House Or Flat
My conveyancers have discovered a problem with the house that I am buying. I am not bothered about it, but my conveyancers won’t exchange as they claim that the mortgage lender won’t let them. Why is this?
When you buy a house with a mortgage your conveyancer will also act for the mortgage lender. Most mortgage lenders are members of The Council of Mortgage Lender (CML), who produce a Mortgage Lenders Handbook (CML Handbook). This sets out details of individual mortgage lenders instructions for conveyancers when dealing with a new mortgage.
If a conveyancer encounters an issue with a property that conflicts with the instructions given in the CML Handbook then the problem has to be resolved so that the conveyancer is happy that it no longer conflicts with the CML Handbook. If this cannot be done the mortgage cannot proceed.
This applies even if you specifically instruct us to continue the purchase – this will cause a conflict of interest and means we will, in all likelihood, have to stop acting for both you and your lender – we have to do this even if you instruct us not to and will probably result in the mortgage offer being withdrawn as this would be a major warning flag to the lender, even if we don’t tell them why.Other frequently asked questions
- My seller has asked for a non-refundable deposit. Should I pay? The short answer is no. You should not pay any deposit until contracts are actually ...
- How much should I be paying in legal fees? Depends on service you require. Up to a point, the more you pay the better ...
- My seller has asked for a non-refundable deposit. Should I pay? Depends – seller cannot tie you into the purchase until exchange BUT can keep your ...
- I have found a property that I like, but I am worried that the seller might keep looking for a better price. What can I do to make sure that the seller only sells to me? Ask seller to enter into lock-out agreement (explain what they are, why you want one ...
- What is a Local Search and why do I need one? Explain what it does - LLC1, CON29. Why do you need one? Can you choose ...
- What is a personal search? Explain difference between them – why should you use one over the other (speed, efficiency, ...
- What is a drainage search and do I need one? Gives details of water and drainage service provider – confirms that property has mains water ...
- What is an environmental search and do I need one? Searches historical and current records to provide an indication of whether your property might be ...
- What is a chancel repair search? Indicates whether your property has a chancel repair liability – this means that you can ...
- Are there any other searches I might need? Coal/tin mining, commons registration etc. Most depend on region ie Cornwall for Tin
- Do I need a survey? Caveat Emptor - most expensive thing you will ever buy – why save £400? If ...
- What is a HIP? See our HIP guide and DIY HIPs in our legal guide.
- My seller has received a better offer and is now asking me for more money. What can I do? This is called gazumping and is an inevitable bi-product of the great weakness of the ...
- There is a nice field next to the house I want to buy. How do I make sure that no one is planning on building on it? Your local search will only relate to the property you are buying and is unlikely ...
- My transaction is moving much too slowly. How can I speed it up? Remember conveyancing takes time – most ‘delays’ are nothing of the sort, it just takes ...
- I live in rented accommodation and my sellers have asked me to give notice. They say that completion will take place before the end of the notice period – should I trust them? The short answer is no. Unless you have actually exchanged contracts neither side is tied ...
- What is stamp duty? Stamp Duty Land Tax (SDLT) is a tax charged on the purchase of property. For ...
- Is there any way of reducing the stamp duty that I have to pay? The short answer is no. It used to be a possibility but these days HMRC ...
- What is an Inland Revenue Land Transaction Return Form? This is a twelve page form usually completed by the conveyancer. Most firms make a ...
- I have agreed to buy a house, but my financial position has changed and I don’t want to proceed. What can I do? Depends on stage of transaction – before exchange you can withdraw at no cost other ...
- I don’t have enough spare cash to pay a 10% deposit on my house purchase, but I still want to buy the house. What can I do? You can agree a smaller deposit – most sellers will accept a smaller deposit or ...
- I am in a long chain and am finding it impossible to agree a completion date. What can I do? Not much. You could ask agents to put pressure on everyone in the chain. You ...
- I have exchanged contracts on my purchase and fixed a completion date. My circumstances have changed and I want to complete on a different day. What can I do? You should immediately tell your conveyancers - they can ask the buyers to agree to ...
- What’s the difference between exchange and completion? “Exchange” means the exchange of contracts. Many years ago the solicitors for the seller and ...
- What do I need to do before completion? You will have a lot of things to do before completion takes place, though your ...
- What happens on completion? Your conveyancer will receive your mortgage funds and will send to seller’s conveyancer as soon ...
- I’ve just discovered that my seller is bankrupt. What do I do now? You should immediately advise your conveyancer and take specialist advice – this can cause enormous ...
- What do I do about buildings insurance? Depends – if you are buying a house then you are usually responsible for insuring ...
- My conveyancer has told me that the house I am buying has some restrictive covenants imposed on it. Is this a problem? Depends on the covenant – depends on the type, how old it is, who has ...
- What is the Council of Mortgage Lenders? The Council of Mortgage Lenders (CML) is the industry association for mortgage lenders, and their ...
- What is the Council of Mortgage Lenders Handbook? The Council of Mortgage Lenders (CML) Handbook sets out lenders’ requirements for conveyancers acting on ...
- What is the difference between joint tenants and tenants in common? Joint tenants and tenants in common are two different ways for two people to hold ...
- What is a TR1 or Transfer Deed? Formal land registry document prepared by conveyancers – transfers property from seller to buyer – ...
- What is an AP1? Land registry application form drawn up by conveyancers – used when making an application to ...
- What is a DS1/END1? DS1 – form used by mortgage lenders to confirm that a mortgage has been repaid ...
- What is a Title Information Document? Copy of land register – used to be called Office Copy Entries – sent to ...
- What is a mortgage deed? Deed that formally charges (secures money against) the property. Drawn up by your mortgage lender ...
- Can a member of my family witness a signature for me? No, the witness needs to be independent, unrelated and over the age of 18 – ...
- I have just completed on my sale and my conveyancer has not yet sent me any deeds. Is this right? That is correct – common misconception that deeds are sent to buyer on completion – ...
- My purchase has been registered and my conveyancer has told me that all the deeds have been sent to me. However I have only had something called a “Title Information Document”. Is this right? Yes – for a freehold property most of the title deeds are obsolete and your ...
- I am completing on my purchase, but I am not sure how I get the keys. What do I do? These will usually be held by the estate agents – be aware that you will ...
- My conveyancer has told me that my seller needed a FENSA certificate for his windows but does not have one. Is this a problem and what can I do? My conveyancer has told me that my seller needed a FENSA certificate for his windows ...
- What is a drainage search and do I need one? Gives details of water and drainage service provider – confirms that property has mains water ...
- What is a chancel repair search? This indicates whether your property might have a chancel repair liability. This would mean that ...
- Are there any other searches I might need? Coal/tin mining, commons registration etc. Most depend on the region: e.g. in Cornwall you might ...
- My lender has carried out a valuation report. Do I still need a survey? The valuation is designed to assure the bank or building society that the property will, ...
- My survey has identified some issues. What do I do now? Find out how much it will cost to remedy. You may be able to negotiate ...
- My solicitor has asked me for ID. Do I have to give this? Owing to the Money Laundering Regulations your solicitor has an obligation to confirm positively your ...
- What is a disbursement? A disbursement is the name conveyancers use for costs that they have to pay on ...
- I am not happy with the way my landlord manages the buiding. What can I do? Under the Commonhold and Leasehold Reform Act 2002 you as a Lessee along with the ...
- I want to buy the freehold of my building. What do I do? You have the right compulsorily to buy out your Landlord’s freehold interest. This is known ...
- I want to extend my lease, what do I do? Under the Leasehold Reform Housing and Urban Development Act 1993 and the Commonhold and Leasehold ...
- I own the freehold to my building jointly with the other leaseholders. The arrangement is causing problems and we want to find a better way of running the block. What can we do? Under the Leasehold Reform Housing and Urban Development Act 1993 and the Commonhold and Leasehold ...
- The lease of my flat includes the garden to the property block, for my exclusive use, but my neighbours refuse to stop using it. What can I do? The key here is that you have ‘exclusive use’ of the garden this means that ...
- My lease says I can use the garden at my block of flats, but my neighbours will not let me and have put up a locked gate. What can I do? In these circumstances you should advise your landlord of the position and ask that he ...
- I can't afford to pay my maintance charge. What can I do? If you stop paying your maintenance charge you will be in breach of your Lease ...
- I want to knock down some internal walls in my flat. Can I do this? It is most likely that your Lease will contain a restriction not to make any ...
- I want to rent out my flat. Can I do this? You are recommended to check the terms of your Lease before you let your flat ...
