FAQs about Residential Conveyancing
What is lease variation ?
Lease variation is the term used to describe the process of using a deed of variation to amend a lease in order to ensure it is up to date to statutory laws and other requirements. Deeds of variation must be registered with the Land Registry.
If I buy a property with a mortgage, what will the lender require ?
Generally speaking, a mortgage lender will request that certain searches are undertaken prior to the completion of a transactions. A local search is a search done of the local authority’s records to find out whether the property or surrounding area are subject to planning permissions or planned developments. A drainage search is done to find out the state of the drainage and sewage connected to the property. Lenders will generally require that both these searches are conducted as a minimum although where appropriate, search to check for subsidence and environmental risks (mining and environment searches respectively) may also be required.
When will I be exempt from paying Capital Gains Tax ?
If you sell a flat or house and for the past 36 months the property has been your sole or main residence, you will not normally have to pay Capital Gains Tax upon sale. You do not even have to have lived in the property for the whole time. The important point is that the property is considered your main residence for the 36 month period. If, however, you have been absent for more than three years or a portion of your house has been used for business purposes, you will have to pay Capital Gains Tax. With regards to the latter, you will be liable for the portion of the house which has been used for business purposes and a room is generally considered sufficient.
If I own a second property, what is the position with regards to Capital Gains Tax ?
If you own two properties, you must elect which one is to be subject to tax and inform Inland Revenue within two years following the purchase. If you do not choose by yourself, Inland Revenue will decide on your behalf and naturally the property which attracts the highest rate will generally be chosen.
What should I bear in mind when buying property at auction ?
Whilst buying a property at auction can be exciting and good deals can be picked up, it can be risky. Many people do not even inspect the property prior to placing a bid which is highly risky on such a large investment. In any case, you should get a hold of the auction pack which will include important legal documentation regarding the property, and if possible you should have a professional conveyancing solicitor inspect it. You should also inspect the property yourself and have a survey done to find any underlying faults with the property. Japanese knot weed, for example, can literally destroy a house within a short space of time as it is difficult to detect upon a brief physical inspection and can grow at an exponential rate.
Can I extend a lease ?
In our experience, it is generally best that you try and seek the consent of the freeholder to extend a lease and Havering solicitors are fully equipped to advise you on how to do this. However, if you wish to start formal legal proceedings, you can do so under the Leasehold Reform, Housing and Urban Development Act 1993, although bear in mind that this is a long process which can take up to two years.
What now ?