FAQs about Residential Conveyancing
What is an indemnity policy ?
An indemnity policy is a type of insurance that can be taken out where there is some degree of legal risk with respect to the property. It could be the case that there are difficult to define historical legal rights attached to the property, such as rights of way. It may prove difficult to remove any degree of risk associated with a historical legal right as it might be difficult to determine who benefits from the right.
You should also consider the attitude of any lenders you are using to buy the property. Whilst many welcome indemnity policies, many lenders are naturally risk-averse of the opinion that it is better to sort out the legal issues first.
Do I need buildings insurance ?
If you are using a mortgage to purchase the property, the lender will require you to take out buildings insurance, although the lender can arrange this on your behalf or you can use the policy you already have on an existing property. You will need to know how much it will cost to rebuild the property in the event it is destroyed. The survey will provide details regarding the amount.
Apartments, however, are a slightly special case as they are usually owned under leasehold rather than a freehold. You should check whether the freeholder already has buildings insurance, although you must bear in mind that his policy might not include the walls, ceilings and floors of your apartment.
Should I carry out a local search ?
If you buying your property using a mortgage, the lender being risk-averse will request that one is carried out anyway in addition to a standard drainage and sewage search and a mining search if the property is in an ex-mining area and is at risk from subsidence. A local search is used to reveal further information about the property concerning planning permissions and developments in the area by searching Local Authority records.
I don’t have the full 10% deposit needed. Is this a major issue ?
It is not uncommon for the exchange of contracts to take place with a less than 10% deposit, although it makes sense to try and explain why you cannot pay the full amount so as to maintain trust.
I want to sell my apartment, but the freeholder has disappeared. What can I do ?
Prior to finding a buyer, you can apply for a Vesting Order through the County Court under the Leasehold Reform Housing and Urban Development Act 1993. A Vesting Order will allow you to acquire the freehold interest. In order for a Vesting Order to be issued, the court has to be convinced that you have made reasonable efforts to find the freeholder. You can evidence this be providing witness statements confirming that a visit to the freeholder’s last known address has not yielding any further contract details as well as official Land Registry documents showing that the freeholder no longer owns the property or has moved and their current address is unknown. If the court is convinced, the reasonable value of the freehold will be determined. The amount will then be paid to the freeholder in the event they resurface.
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What is an indemnity policy?
An indemnity policy is a type of insurance that can be taken out where there is some degree of legal risk with respect to the property. It could be the case that there are difficult to define historical legal rights attached to the property, such as rights of way. It may prove difficult to remove any degree of risk associated with a historical legal right as it might be difficult to determine who benefits from the right.
You should also consider the attitude of any lenders you are using to buy the property. Whilst many welcome indemnity policies, many lenders are naturally risk-averse of the opinion that it is better to sort out the legal issues first.
Do I need buildings insurance?
If you are using a mortgage to purchase the property, the lender will require you to take out buildings insurance, although the lender can arrange this on your behalf or you can use the policy you already have on an existing property. You will need to know how much it will cost to rebuild the property in the event it is destroyed. The survey will provide details regarding the amount.
Apartments, however, are a slightly special case as they are usually owned under leasehold rather than a freehold. You should check whether the freeholder already has buildings insurance, although you must bear in mind that his policy might not include the walls, ceilings and floors of your apartment.
Should I carry out a local search?
If you buying your property using a mortgage, the lender being risk-averse will request that one is carried out anyway in addition to a standard drainage and sewage search and a mining search if the property is in an ex-mining area and is at risk from subsidence. A local search is used to reveal further information about the property concerning planning permissions and developments in the area by searching Local Authority records.
I don’t have the full 10% deposit needed. Is this a major issue?
It is not uncommon for the exchange of contracts to take place with a less than 10% deposit, although it makes sense to try and explain why you cannot pay the full amount so as to maintain trust.
I want to sell my apartment, but the freeholder has disappeared. What can I do?
Prior to finding a buyer, you can apply for a Vesting Order through the County Court under the Leasehold Reform Housing and Urban Development Act 1993. A Vesting Order will allow you to acquire the freehold interest. In order for a Vesting Order to be issued, the court has to be convinced that you have made reasonable efforts to find the freeholder. You can evidence this be providing witness statements confirming that a visit to the freeholder’s last known address has not yielding any further contract details as well as official Land Registry documents showing that the freeholder no longer owns the property or has moved and their current address is unknown. If the court is convinced, the reasonable value of the freehold will be determined. The amount will then be paid to the freeholder in the event they resurface.