DIY conveyancing- will my circumstance make this straightforward?

Edtough

Hi all,

I have ordered a guide to DIY conveyancing and am going to consider doing just this for my future property purchase. The purchase will likely be the following:

Bought for cash at auction at max £125
2 bed leasehold flat in need of restoration

I'm guessing having no mortgage lender or stamp duty to deal with will make things easier, but what are the implications of leasehold and buying from auction with regard to conveyancing?

Doozergirl

I've been through the process, many times and I'd say that I know my way pretty well around a set of deeds and the searches but I would never do my own conveyancing for a purchase. If you get anything wrong, the only person you can blame is yourself and the potential cost could be far greater than the money you saved on using a solicitor.

It's not so important on a sale, it's not your money at risk any more.

You pay a solicitor to get it right. The money you pay them also acts as an insurance policy for you. Auction properties often have something wrong and a solicitor knows where to look.

I just wouldn't. When you come to sell on and there's something you didn't pick up on...

giddypenguin

I know that the MSE user: catfish50 did her own conveyancing, maybe have a word with her. But it sounds like the scariest thing in the world to me. If you think you know all the risks, and you accept them then go for it. I'd always have a nagging feeling that I'd done something wrong. Would rather pay for someone who knew all the ins and outs to do it all.

Edtough

I'm grateful to speak to people with experience of this so thanks. I can see where there might be all sorts of pitfalls with old houses on their own land, but is there much to bite you in the !!! with a purpose built flat or maisonette in a block with no land?

DocProc

Under no circumstances even consider doing the conveyancing yourself on a Leasehold flat.

If you make the simplest mistake, you could find yourself ending up with a Defective Title.

There are so many pitfalls to fall into.

If that should happen, and you end up seemingly getting the property part-registered into your name, instead of properly registered into your name, then just ask yourself:

"Just who on earth would want to buy a flat, which has a defective leasehold title?"

This is where the seller can't prove the leasehold interest is his so as to be able to sell it and the current 'part-registered owner of the leasehold interest' is now stuck with something that just cannot be transferred on properly to someone else.

If you hit any problems in this respect, then you couild end up with endless court and legal costs trying to sort the matter out.

You should easily be able to get the job done well by an experienced and properly qualified, insured and experienced property conveyancing professional for around £500.

CloudCuckooLand

The fact its going for cash may hint at existing lease issues - they might already know its unmortgagable...

Research x3, then let a professional's indemnity insurance give you peace of mind.

DocProc

GOLDEN RULE No.1

Before buying a property at auction, always have the 'legalities' checked out by a property professional.

Property ends up being sold at auction for a variety of reasons. And leasehold flats sold at auction are notorious for having Title problems.

Just imagine a property that has been split into four. Eg, a detached house converted into two flats upstairs and two flats downstairs:

They share so many things with each other, eg, roof and supporting walls. There would usually be a legal relationship connecting all four properties together. This might say that all four have to own the freehold of the whole building and that no one can sell his leasehold interest in his flat without also disposing of his freehold interest in the whole building.

Then time goes on a while, and there is a falling out over who is not looking after their litter bins properly or perhaps, parking their car properly.

Then one day "someone" wants "someone else" (ie. one of the others) to either dispose of or co-own the freehold of his leasehold flat. "Someone", who apparently cannot even look after their own litter bin or park a car properly.

This type of relationship can be fraught with so may difficulties.

Definitely get a properly experience and qualified conveyancer involved to make sure everything from a legal viewpoint is properly sorted out.

PasturesNew

When you buy at auction you have a very limited time in which to complete, or lose your deposit. It might be as little as 14 days.
Many solicitors don't do conveyancing for auction property because it has to be done so quickly.
Leasehold is a problem at the best of times, trying to get it sorted/the answers within the strict auction timescale could be impossible.
A lender won't let you touch the money, they'll insist on a proper solicitor handling the money, the fee for which might be as much as the full conveyance anyway.

I know a solicitor who always uses a conveyancer when they buy houses, so they have somebody to sue if it goes wrong; they wouldn't do their own conveyancing as it's a specialist area.

terryw

Over the years, I have been a dedicated DIY conveyancer - I have bought and sold over 50 dwellings over the last 40 years. Registered Freehold land is a doddle if no mortgage is involved. The main drawback generally is the one raised by PasturesNew :

"A lender won't let you touch the money, they'll insist on a proper solicitor handling the money, the fee for which might be as much as the full conveyance anyway."

but if you are buying cash, this will not apply.

In theory, provided that the property is registered with title absolute or good leasehold title, then you should have no problems, but there is always a but! For the many reasons given by the posters above, I would not attempt this one even as a cash buyer.

Shop around and pay the fees would be my advice.

terryw

PasturesNew wrote: »

A lender won't let you touch the money, they'll insist on a proper solicitor handling the money, the fee for which might be as much as the full conveyance anyway.

I agree entirely with your post PN, but the words " or licensed conveyancer" should be included after "solicitor".

bw

G_M

I regularly argue that DIY conveyancing is possible, and not something to be automatically against, although with a number of caveats. And I have done it myself several times, both purchase and sale.

But leasehold adds complication and risk (I've only ever bought one lease and used a solicitor). I imagine to a large extent it depends on the lease. Some are easy to comprehend, and straight forward, some are clearly not.

And auction? Again I've never done this, but by definition properties at auction are far more likely to have issues, structural and/or legal. And as said, time is limited.

I would advise against, and as said I am (an almost) lone voice on this forum in supporting DIY conveyancing (where the individual and the circumstances are right).