Licensed Conveyancer AMA

[amiw]

feels like this should be in the property thread or maybe sellers buyers roll call but anyway ask away!

I can’t believe you have the time for AMA!

@Lightline this week has been so busy- again- that I am kind of glad no questions so far! The property thread is full of useless/slow/no idea what they are doing all day comments-which may be well deserved- just thought I would offer an alternative perspective if wanted

Why does it all take so long?

Is there anything you wish buyers would do, to help the process along?

The main reason it takes so long is chains and third party involvement/requirements. Although so long is relative- why does 8 -12 weeks (average transaction time apparently) to buy in most cases the biggest asset you will ever own seem so long? I think also a lot of people (happy to be corrected) count the time they were looking/on the market when that stage is irrelevant to the time the next stage takes

Do you see many surveys with this many category 3s? Or is this fairly standard. (1930s build)

That seems like more than average. But the full report may advise to have more checks/ tests or may state specific issues. Never ever seen a HBR without gas and electrics in 3 though!

Would you move house during a pandemic/recession?

Why do Conveyancers wait till later in the process to request searches when it is nearly always searches that delay exchange / completion ?

It was delayed searches that almost stopped my sale & purchase completing simultaneously last time I moved. I therefore had to pay £500 extra having everything packed for storage just in case. The removal company told me this happens all the time and it is almost always down to searches.

Could I please also ask why the change over the last few years to shorter and shorter windows between Exchange and Completion. That is a nightmare if you are trying to book removals.

Would you be concerned / do some further digging if local authority searches didn't show any record of building regs for a 25 year old house? Have had problems selling and can't work out whether my conveyancer was negligent when I bought, or the buyer's was being over zealous. Mine simply wrote that the council didn't have the records so "it is likely to have been dealt with by NHBC"... But didn't look any further, or attempt to locate the NHBC stuff which for all I know doesn't exist (It would have expired anyway by the time I bought the house)

@Bmidreams if I needed to or wanted to and could afford it yes

@inmylifeIlovedthemall all you need to request searces are instructions to act the title plan and money on account to order them. Sometimes the title plan is not available straight away (new build conversion tranfer of part unregistered) or your client asks you not to order searches until x happens (survey mortgage offer). Thats my personal experience. I do know most firms will not order searches until they have contract papers from the sellers (unless it is one of the troublesome plans above you can get it from land registry yourself although you run the risk that there may be additiional land under a separate title number that you do not know about and have not then searched) some wait for mortgage as if the lender ends up being different to the one your client thought it would be at the start you might need specific searches. Lack of time in between exchange and completion- never my choice. Chains are impatient. Most people decide on a date far too early and eveything may only just be in just before then and they still insist on completing then even though its only now 3 days away during lockdown though a short gap was sensible mind!

@OhNoWhatDoIDoNow so 1995? Tricky. On the one hand you would ideally like to see it. On the other if not carried out by the LA may be impossible to find out which architect or approved inspector signed it off as they do not have centralised records accessible to the public. Most lenders want to see it within 10 years of build. Some 20. Practically though if it had not been signed off by anyone and it has been there for that long as long as the survey shows the build is ok, what else can be done? No seller is going to to be able to go back to building control 20 / 25 years later and get retrospective sign off. It may put some people off though.

Do you have a law degree? If so, when did you decide to make conveyancing your thing? Is it interesting?

No law degree or LPC so chosen specifically rather specialising in one part of the law previously experienced in part. Land law is fascinating (imho) Qualified 5 years ago. Yes it can be interesting day to day especially unregistered properties or rectifying title issues- however the vast majority of transactions no one wants to fix any problems -just find a way to move forward as quickly as possible usually involving indemnity insurance. Which I understand as the underlying reason for the transaction is usually moving or realising capital so speed neeeded- but the most interesting transactions for me personally are where there is no option but to fix the issue.

I know people who are having great difficulty buying and/or selling a flat due to lenders requesting an EWS1 form. This is even for low rise, non cladding blocks. Have you encountered these issues?

Absolutely. In the past month alone 2 of my transactions have fallen through due to this. Another awaits a cladding report and I fully expect another sale to fall through as the buyer is trying with lender number 3.

@shiveringwiggles

Is there anything you wish buyers would do, to help the process along?

Ditto this question

I have always made any transaction chain free by moving into rental accommodation and only accepting offers from buyers who are also chain free. However my current move is 9 months in and we’re only just now about to exchange. My buyer’s conveyancer just will not communicate with my solicitor in a timely fashion...weeks go by with no conversation. Why might this be? Covid cannot be blamed for everything. It delayed a survey but that is all.

Is completing the purchase really not a priority for conveyancers as I thought they’d want to get paid?

If a leasehold is mentioned on a freehold title deed, and needs to be combined (?) before the sale can go through, how long would this take the vendor to organise? Is it a long process?

Why is the system here so complicated and why are odd covenants allowed to stand? When we bought our house we had to take out an indemnity against a covenant that said no building within 4ft of the boundary and the previous owner had built an extension right up to it. Current planning and building regs were all met but conveyancer advised the descendents of the person who sold the land and wrote the convenant could come and demand the extension be demolished. Why on earth is this legal? Friends abroad are baffled by our archaic system, there if everything meets local authority rules it's fine, no one can make a historical claim on what is now your property. I find it baffling!

Things for buyers to do

Have your mortgage in principle before you offer
Book your survey asap
Get the gas/electrics/ damp/timber/ drain checks done early on
Have your evidence of source of funding ready and if you have giftors prepare them to do the same
Tell your lawyer about any apparent changes to the property since construction so they can ask for documents to evidence permissions early on
Get ready for a lot of reading of reports
Be prepared for the rest of the parties in the transaction to be less organised than you
Never wait to ask questions. And there are no silly ones-if you are not sure ask
If there is something that is a dealbreaker for you tell your lawyer. Eg- you have cats. You are buying a flat. You want to take the cats. The lease needs to be checked specifically for whether this is permitted as soon as it is in. If you wait until you are reported to to see if pets are allowed and then tell your lawyer that you need consent for cats, massive delay or waste of time if absolute prohibition

Yep completion is payment time. Many firms will wait until a specific stage in the transaction before starting the legal work as until then its not proceedable- and a lot work on a no sale no fee basis. So you could do all the work, survey comes in, is bad and buyer withdraws- no completion no payment. One possibility

Some firms furloughed nearly all their staff during lockdown and furlough- so had to prioritise those completing imminently second possibilty

Just useless?

@shiveringwiggles merging freehold and leasehold? Why? Are they currently in separate ownership? Is the freehold bigger or the same size as the lease?

@CarinaClaws thats the nature of land law. The covenant would have been created for a reason- so that the original vendors did not lose any use or enjoyment of the land they retained-and possibly to also protect others they sold other parcels to. New covenants are still being created that will run with the land forever on every new build development in England and Wales. Legislation may change over time as to what is permitted by planning- the covenants will still apply. In addition the land does not belong to you per se under our system. It is is yours for a period of time only. Leasehold the time is the lease term. Freehold it is a time that has no limit- but the crown or the LA can still take it back if required- compulsory purchase. Covenants that are no longer necessary (ie there is no one left to benefit) can be removed on application to the lands tribunal - not quick