Freehold property with rent charge instead of service charge

Aqua26

So bank has come back and accepted the charge - now solicitor is saying he wont recommend proceeding with it .. however other properties in same development are being bought and sold without any issues at all .. I am confused what to do - we dont want to lose out on this house .. I think I will proceed with having indemnity policy insurance in place ! Solicitor has asked for singing a disclosure note about protecting him etc etc

AdrianC

Aqua26 wrote: »

So bank has come back and accepted the charge - now solicitor is saying he wont recommend proceeding with it .. however other properties in same development are being bought and sold without any issues at all .. I am confused what to do - we dont want to lose out on this house .. I think I will proceed with having indemnity policy insurance in place !

It's entirely your call as to whether you think your solicitor is being a nervous nelly or is trying to save you from your own foolhardiness.

I'd be inclining towards remembering the lender have a strong vested interest, and tend towards caution. So if they're cool...

Solicitor has asked for singing a disclosure note about protecting him etc etc

Any particular tune?

Aqua26

estate management company came back by explaining that i will be eventually the rent charge owner so no one can register lease etc without my consent - they only referrred rent charge to have it MUST paid as part of on going service carried out - also i Spoke to neighbours who just bought next door house last year - they mentioned their solicitor even didnt spot anything like and they got their mortgage without even declaring it to the bank etc etc ... so all this left me with thinking that my solicitor is indeed nervous nelly sort !!!

he didnt send me the disclosure doc yet but did mention that I have to sign before before exchaning contracts !!!

Kyresa

Aqua26 wrote: »

estate management company came back by explaining that i will be eventually the rent charge owner so no one can register lease etc without my consent - they only referrred rent charge to have it MUST paid as part of on going service carried out - also i Spoke to neighbours who just bought next door house last year - they mentioned their solicitor even didnt spot anything like and they got their mortgage without even declaring it to the bank etc etc ... so all this left me with thinking that my solicitor is indeed nervous nelly sort !!!

he didnt send me the disclosure doc yet but did mention that I have to sign before before exchaning contracts !!!

Estate management company are talking rubbish. S.121 of the LPA 1925 allows them to slap a lease on if you fail to pay the charge on time when demanded. The right arises if the rentcharge remains unpaid for 40 or more days. (edit, and how will you eventually be the rent charge owner... it's for the benefit of the estate.. so when they say "you".. they probably mean you as part of the estate, then the directors/secretary of that management company can enforce).

Your solicitor is not being a nervous nelly. He is applying the rules in the lenders handbook as he is supposed to do and being cautious. After all... if you fall foul of this, you'll be running back to the solicitor, not the management company, complaining you weren't properly warned.

And the next door neighbours would likely have signed a Deed of Covenant, as you most likely will, confirming they will pay the rent charge going forward. Whether they chose to read it is another matter.....

Kyresa

davidmcn wrote: »

The solicitor should be explaining what the risks are, which they don't appear to be trying to do.

Seems to be quite a lot of this going on, judging from other threads - solicitors just asking the clients whether or not they want to accept something without actually offering any advice.

That's what the bargain bucket, push it through as fast as possible conveyancing market has brought with it.. isn't it wonderful :rotfl::rotfl:

AdrianC

Kyresa wrote: »

That's what the bargain bucket, push it through as fast as possible conveyancing market has brought with it.. isn't it wonderful :rotfl::rotfl:

That's what comes of knowing the price of everything, value of nothing.