Are you moving?
We certainly live in interesting and challenging times, and you would be forgiven for wondering what we will be hit with next. From the cost of living crisis to public sector strikes, every day brings fresh challenges for us all as we navigate a path through the obstacles life puts in our way.
If we are lucky, we are blessed with constants in our lives which make modern day living easier to bear. Family, friends and loved ones who are there to support us when the going gets tough. And a roof over our heads. Everyone aspires to have a home of their own. We all know how hard it is for first time buyers to save that deposit which will allow them to get on the property ladder. Mortgage rates are now much higher than many home owners have been used too, but there is a sense that things are calming down and now that Spring is here, you may be thinking of making that move that you have been considering.
Get your property looking its best and marketed by one of the leading agents in your area. Good local estate agents know their patch and how to market your property to its fullest advantage. Then find the property of your dreams. Is it in the right catchment area for your child’s next school? Does it have that home office you need now that we are hybrid working or fully working from home? Is the garden large enough? Where will you park your car? There are many aspects to consider to get your move right. Do the thinking now to avoid costly mistakes later.
Then select your conveyancers. Remember, you have a choice. You do not need to go with the conveyancer your estate agent is promoting. That conveyancer may be paying the estate agent a referral fee. You have the right to independent legal advice. Ask your friends and family for recommendations or look at google reviews. Appointing the right conveyancer is going to make the next steps in your move that much more efficient. Get your mortgage agreed in principle and consider commissioning a good surveyor to give the property a clean bill of health. After all, it is likely to be one of the biggest investments you will make in your lifetime.
There is a lot in the media currently about housing, leasehold reform and building safety. We worry about house prices going up. We worry about house prices falling. We worry about mortgage interest rates, mortgage affordability, saving for larger and larger deposits, Stamp Duty Land Tax, property fraud and scams. The list is endless. Buying a property can seem like a nightmare.
Do you know, for example, if you buy a leasehold flat, you are buying a term of years? You will not own the land on which your property stands. Someone else, the freeholder will own the land. Traditionally, you would pay ground rent to the freeholder. As part of the Leasehold Reform (Ground Rent) Act 2022, ground rent has been abolished for new leases. But this does not apply to existing leases. Any pre-2022 leases may well contain ground rent provisions. The 2022 law, whilst welcome, has had the effect of creating a 2-tier system. Why does it matter? It matters if the ground rent also provides an ‘escalation clause’ which potentially means that the ground rent could double every 5, 10 or 15 years. When the ground rent reaches a certain level (£1,000 per annum in London or £250 per annum outside of London), it creates a problem for mortgage lenders who will not lend on these properties without a deed of variation (which is only possible if the freeholder agrees and the leaseholder pays a premium for the deed of variation and the freeholder’s legal costs). Sometimes a lender might accept indemnity insurance. Either way, it’s a problem a buyer would not expect or anticipate.
Similarly, with the cladding scandal following the Grenfell disaster of 2017 where unfortunately so many leaseholders found themselves facing huge remediation costs and properties they could not sell. Finally, the government has introduced legislation to force building owners and/or builders to pay for the remediation costs. Unfortunately, this will not help everyone affected.
Problems can also arise if you buy a freehold property. Did know if you buy a new build house, the developer may impose estate rent charges (a type of service charge) in order to collect contributions from the residents to pay for the maintenance of the communal areas and grounds? If the wording of the estate rent charge is not properly drafted, it could have the effect of you losing the property if you fall into arrears with payment of the estate rent charge. Mortgage Lenders will not lend on properties with estate rent charges unless certain provisions are in place.
We are here to help, advise and facilitate your move, so that making that move will be as straightforward and as stress free as possible.
Our residential conveyancing team at Pearson Hards, led by Partner Hatice Mustafa, has worked hard to establish itself as the foremost conveyancers in New Malden and the surrounding areas. Just take a look at our google reviews to hear the very positive experiences of our clients. Call us to discuss your move. If you are first time buyers, we will guide you through every step of the way so the whole process becomes more manageable and less daunting. Ask us if you are worried about any part of the home buying/home moving process.
The team are ready to assist you with your move, contact us on 0208 949 9500 or info@pearsonhards.co.uk and we will be happy to discuss your move.