What is Conveyancing?
Conveyancing is the legal process of transferring the ownership of property or land from one person to another. Property transactions can be a stressful and confusing process, please see the answers to frequently asked questions below and feel free to contact one of our offices to make a further enquiry.
Timescales
How long will my conveyance take?
It is difficult to commit to a precise timescale, as it will depend on external factors such as:
- The type of property – whether it is freehold or leasehold.
- The location of the property
- Whether mortgage finance is required
- The length of the chain
- The expectations of the chain
Generally, you can expect a freehold conveyance to take between 6-8 weeks and a leasehold conveyance is likely to be closer to 12 weeks.
What is a chain?
Typically, people choose to purchase and sell simultaneously to avoid the implications of owning two properties at once. Several linked transactions can build up, each one dependant on the other, which creates the chain in property transactions. The speed of progress is dependent upon the slowest transaction in the chain as all transactions must exchange contracts simultaneously.
Fees and disbursements
Disbursements are third-party charges which are made in the course of the property transaction, such as Land Registry fees. Land Registry fees will be calculated on a scale. [Insert link to Land Registry fees – HM Land Registry: Registration Services fees – GOV.UK (www.gov.uk)
Typical disbursements on purchase include searches, Land Registry fees and Stamp Duty Land Tax.
Typical disbursements on sale include the payment to retrieve title documents from the Land Registry. If you are selling a leasehold property or a freehold with a management company, then you may be expected to pay for a leasehold or freehold information pack.
What is an LPE 1 in leasehold transactions?
This is a ‘Leasehold Property Enquiries’ form which is a standardised questionnaire used to collect all the relevant information about a leasehold property held by the landlord or managing agents. It will comprise important information you will need to know about your purchase such as ground rent, insurance, services charges, and any other relevant information. Generally, they will be completed by the freeholder or management company who may make a charge for this.
What Stamp Duty Land Tax?
Stamp Duty Land Tax is payable when you buy houses, flats and other land and buildings over a certain price in the UK, although there may circumstance in which relief or exemptions can be applied. Stamp Duty Land Tax is a very complex and fact specific area and we will discuss this with you during your transaction. The government website offers a useful calculator which can provide you with some initial guidance.
Owning your new property
If I am purchasing a property with my partner what are the ownership options?
When two or more people purchase together, they become co-owners. There are different ways to own a property as co- owners and we will discuss this with you at the appropriate stage of your transaction.
As joint tenants, co-owners jointly own the whole of the property, you will not have specified shares and will not be able to leave a share of the property in your will.
As tenants in common each co-owner owns specified shares of the property, and a Declaration of Trust can used to support this arrangement and protect your future investment in the property.
What if my transaction falls through?
In most cases, Nantes offer a ‘no exchange, no fee’ arrangement which means that you will not have to pay for your legal costs if your transaction falls through. At Nantes you will not be asked to pay any monies upfront on account in relation to your sale matter and will only be required to pay money on account on your purchase transaction to cover the initial cost of searches.
When can I book my removals?
It is important that you wait until the exchange has occurred before you book your removal, as nothing is guaranteed until this point. At the point of exchange of contracts, your solicitor will ensure that the completion date is agreed with the other side. Once the contract has been exchanged you have the protection from conditions within that contract to fall back on should anything go wrong; therefore you are able to book your removals as both the buyer and seller are legally committed to the transaction.
You may also find our Buyers Guide To Conveyancing article helpful if you have more conveyancing questions.
