Staircasing to 100% and Searches

mane1034

I have a shared ownership flat with 25% share purchased 4 years ago.

I am in process to buy rest of shares in my flat.

Do I need to pay for all the searches again? I have seen quote from my solicitor and he has included searches there?

kingstreet

If you are paying cash for the additional share, no. That would be your choice. If you require a mortgage, the solicitor is acting for the lender as well as for you, so then the answer may well be, "yes."

mane1034

I need mortgage for the rest of 75% share.

Should I discuss with my lender if searches are required?

I yet have to appoint my solicitor. I might be using solicitor from the panel of the lender.

kingstreet

The people you speak to at the lender's call centre would probably not know a search if it smacked them in the mouth. Take the solicitor's word for it. They are likely to know the CML Handbook entry for that particular lender and its requirements.

If you don't use a solicitor on the lender panel, you may then have to pay for the lender to be represented by a solicitor of its choice.

For example, one of my clients is currently deciding on;-

- use of her own solicitor who is not on lender panel (Abbey/Santander) with lender using a panel firm to represent it

or

- use of a panel solicitor so they and the lender can be represented by the same firm.

In this case, the lender's solicitor charges £275 + VAT just for the lender's legal work, so the client may choose a panel firm, as their own solicitor, plus the lender's solicitor, is more expensive.

zzzLazyDaisy

Your solicitor doesn't just act for you, they also act on behalf of the lender. Even though it isn't a 'new' house for you, things may have happened in the past four years that the lender may want to know about before it agrees to fund the remaining purchase.

mane1034

Thanks for the useful information.

My lender is Nationwide and I am directly applying mortgage without broker.

Nationwide will provide a solicitor from its own panel and will pay the basic fee for the legal work.

I will ask this question to solicitor I will be getting from the panel?

Can you please explain what is CML Handbook?

kingstreet

You need to ask Nationwide if it will contact its panel solicitors (if they don't already know) to ask if they will take on a transfer of equity. If they instruct a firm which won't, you could end up with one firm doing the remortgage and another doing the TofE. That would be a nightmare.

CML = Council of Mortgage Lenders.

Handbook = bible. Lenders put all their requirements in there so solicitors don't have to call for answers to quesions, such as "searches on shared ownership staircasing."

kingstreet

This;-

http://www.nationwide-intermediary.co.uk/includes/pdf/Additional-Legal-Charges-Jan-2011.pdf

indicates an additional cost of £245 + VAT + land registry fees + search fees for a transfer of equity.

mane1034

Thanks again,

There is no mortgage outstanding on the 25% share I own. I paid everything and my mortgage account is closed.

Will this help?

kingstreet

It makes no difference to the transfer of equity.

Effectively, you are asking Nationwide to do a remortgage of an unencumbered property, together with a purchase of equity, combined with a transfer of equity into joint names.

Only they can tell you what is involved in that from their perspective.