Existing Shared Ownership Flat Report

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Conveyancing Reports

REPORT ON PROPOSED PURCHASE OF THE SHARED OWNERSHIP PROPERTY PREPARED FOR

We have now received the contract documents from the seller’s conveyancers. We enclose the documents listed below. If you have any questions about them or about the contents of this report, please let us know.

  1. SUPPLEMENTARY NOTES

A copy of our Supplementary Notes are enclosed. They form part of this report and contain further important information about your purchase. We will draw your particular attention to sections of the Notes which are of specific relevance to your purchase and we would strongly recommend that you read carefully through those sections.

All shared ownership properties are leasehold. Please read section 15 of the Supplementary Notes for further information about shared ownership property. Please read section 14.1 of the Supplementary Notes for general information about leasehold property.

Repossession

As you are buying a repossession property, we would draw your particular attention to section 10 of the Supplementary Notes.

Solar Panels

The property has solar panels which are owned outright by the seller.  We would draw your particular attention to section 12 of the Supplementary Notes.

The property has solar panels. They are not owned outright by the seller, but are on a long lease to the panel provider. We would draw your particular attention to section 12 of the Supplementary Notes.

Green Deal

We understand that there have been installations under the Green Deal. We would draw your particular attention to section 13 of the Supplementary Notes.

  1. COPY ENQUIRIES RAISED

These are the enquiries we have raised with the seller’s conveyancers based on our inspection of the documents supplied to us. We will report any issues arising from the replies we receive. If you have any further enquiries you wish us to raise at this point, please let us know.

  1. LAND REGISTRY PLAN OF THE PROPERTY

This is the Land Registry title plan. It shows the extent of the property edged in red. Land Registry title plans are to a small scale and are not intended to show the precise location of each boundary. However, boundaries should be checked on site and any significant discrepancies referred to us so that we can seek clarification from the sellers.

If applicable, that is if the property includes any land, please let us know if you think that the seller is occupying land which appears from inspection to be outside the red edging on the plan, because you will not own such land following completion. Please also let us know if you think that the red edging on the plan includes land which appears from inspection to be occupied by neighbours because those neighbours may have acquired rights to it.

  1. REGISTERS OF TITLE

This is the Land Registry “Official copy of register of title”. It contains legal information about the property, comprised in three registers. The title number, a unique identification number for the property, is shown at the top of each page of the registers. The Property Register (register A) describes the property, confirms the tenure of the property (freehold or leasehold) and contains any matters benefitting the property, such as rights of way. The Proprietorship Register (register B) gives details of the current owner and specifies the quality of the title with which the proprietor is registered (see section 1 of the Supplementary Notes). The Charges Register (register C) contains any adverse matters affecting the property, such as restrictive covenants. This section also includes mortgages, if any. There may be no Charges Register if there are no mortgages or adverse matters. There may be a separate Schedule of Restrictive Covenants.

The registers consist of numbered entries, each entry containing information about the property or matters that affect it. This information has been extracted by the Land Registry from deeds or documents relating to the property.

Any entries in the registers which we need to draw to your particular attention are referred to in the report in section 5 below.

  1. DOCUMENTS REFERRED TO IN THE REGISTERS OF TITLE

Sometimes the Land Registry will file a whole document, such as a transfer or a conveyance, with the registers of title, rather than extract parts of it onto the registers.

There are no documents filed with this title.

The following documents are filed with this title and copies are enclosed.

* dated the *.

The sections of the documents which we need to draw to your attention are referred to in the report below.

Report on Matters contained in the Registers and Filed Documents

Where we have concerns about any entries in the registers (section 4 above), or any documents referred to in the registers (section 5 above), we will have raised these concerns with the seller’s conveyancers and a copy of our enquiries is enclosed.

The following is a summary of any matters affecting the property as revealed in the register entries or filed documents.

Services

Please read section 2 of the Supplementary Notes for information about service rights and reservations.

Please read section 6 below for information about any services rights which have been granted and reserved in the lease, specifically in relation to this property.

The services rights and reservations in the registers are set out in *.

We regard the position as satisfactory.

There are no relevant provisions in the registers.

Rights of way to the property

Please read section 3 of the Supplementary Notes for information about rights of way.

Please read the section 6 below for information about any rights of way which have been granted in the lease specifically for this property.

The rights of way granted in the registers are set out in *.

There is a right of way on foot over *.

There is a right of way on foot and with vehicles over *.

There are no relevant provisions in the registers.

Rights of way for others over the property

Please read section 4 of the Supplementary Notes for information about rights of way over the property.

Please read section 6 below for information about any rights of way reserved in the lease specifically in relation to this property.

The rights of way reserved in the registers are set out in *.

A right of way on foot is reserved over *.

A right of way on foot and with vehicles is reserved over *.

There are no relevant provisions in the registers.

Restrictive covenants

Please read section 5.1 of the Supplementary Notes for information about covenants.

Please read section 6 below for information about covenants contained in the lease which relate specifically to this property.

The property is subject to restrictive covenants which are set out in *.

In particular, the property is subject to a covenant which restricts building work, which is at *. Please read section 5.2 of the Supplementary Notes for information about this particular type of covenant.

There are no relevant provisions in the registers.

Unknown covenants

The property is said to be subject to unknown restrictive covenants. Please read section 5.3 of the Supplementary Notes for information about the implications of this.

The covenants are referred to at entry * of the Charges Register.

Agreements and declarations

Please read section 6 of the Supplementary Notes for information about agreements and declarations.

Please read section 6 below for information about agreements and declarations which are contained in the lease which relate specifically to this property.

The agreements and declarations in the registers are set out in *.

There are no relevant provisions in the registers.

  1. THE LEASE

  2. A) Plan

Attached to the lease is a plan or plans which show the extent of the property. Please check the accuracy of the plans and report any discrepancy to us. Please also note the description of the property at *

The plans also show a car parking space which is included in the title and you will need to check that this is the correct space as it appears on site.

The plans also show a car parking space which is allocated to the property. It does not form part of the property you are buying but the lease grants you rights in respect of it, subject to the right of the landlord to allocate an alternative space. You should check that this is the correct allocated space as it appears on site.

There is no car parking space forming part of the property or allocated to it.

The following rights of way are also shown on the plan: *. See section J below.

  1. B) Length (“Term”) of the Lease

The lease is for * years from *. It has approximately * years remaining.

We believe that the lease term is not an issue.

We believe that the lease term is not an issue at this stage, however please read the important information at section 14.2 of the Supplementary Notes.

We believe that the lease term is an issue in that it may be, or may soon become, unacceptable to some lenders unless it is extended. You need to factor in the cost of a possible future lease extension when making your financial calculations. You may need to staircase to 100% in order to extend the lease. Please read the important information about lease terms at section 14.2 of the Supplementary Notes.

  1. C) Rent

The starting gross rent was £* per annum. The starting specified rent was £* per annum. The current rent payable is said by the * to be £*.

It is subject to review which is set out in *. The rent increase is the Retail Prices Index x *%. See section 15 of the Supplementary Notes for further information.

Ground Rent

Most leases are subject to an annual “ground rent” which is payable to the landlord in addition to any service charge.

There is a ground rent of a “peppercorn” which means that effectively there is no ground rent. There is therefore no ground rent issue with this property.

This lease provides for a ground rent as detailed below. Note that the ground rent will not become payable until after final staircasing to 100% ownership has occurred.

There is an annual ground rent of £*. It is fixed for the term of the lease and we regard the position as acceptable.

There is an annual ground rent of £*. It is an increasing ground rent in accordance with the details below. Please read the important information about increasing ground rents at section 14.3 of the Supplementary Notes.

The ground rent review provisions are at * in the lease.

The ground rent will next be reviewed on * and at * yearly intervals thereafter.

The ground rent will increase in line with the Retail Prices Index (inflation).

The ground rent will increase in line with house price inflation.

The ground rent will increase to fixed amounts as detailed in the review clause. The next increase will be on * when the ground rent will increase to £* per year. The highest level of ground rent will be £* starting in *.

  1. D) Service Charge

There is provision for a service charge in this lease at *. Please read through section 14.4 of the Supplementary Notes for information about service charges.

  1. E) Compliance

To avoid difficulties on re-sale, leases should comply with the Council for Mortgage Lenders (CML) Guidelines. We regard this lease as compliant with the Guidelines.

  1. F) Tenant’s Covenants

There are tenant’s covenants in this lease at *. Please read carefully through them and please read section 14.5 of the Supplementary Notes.

Covenant * prohibits you from, or requires you to obtain consent before, carrying out building works at the property. Failure to do so may lead to enforcement action by the landlord. It may also cause difficulties for you on re-sale.

  1. G) Landlord’s Covenants

These are contained in * of the lease. We consider that the covenants are adequate.

  1. H) Restrictions

There are further tenant’s covenants and restrictions which deal with your day to day use of the property and which are contained in * of the lease. Please read carefully through them and please read section 14.6 of the Supplementary Notes.

There are no additional restrictions in this lease. See section F above for the restrictions affecting this property.

  1. I) Rights Benefiting the Property

These are contained within * of the lease. Please check carefully through the rights granted and ensure that they are sufficient for your use of the property. They should entitle you to use all common means of access to the flat (internal and external), to use all service pipes and cables serving the property, to have rights of support and protection from surrounding flats together with any rights to use specific facilities (such as a bin store) and rights of entry into neighbouring flats or common parts where necessary for repair or maintenance purposes.

Specific rights granted are as follows –

There is a right of way on foot over the area shown * on the lease plan. You should ensure that free and unobstructed access can currently be obtained over the right of way. If this is not the case, please advise us.

There is a right of way on foot and with vehicles over the area shown* on the lease plan. You should ensure that free and unobstructed access can currently be obtained over the right of way. If this is not the case, please advise us.

  1. J) Rights Reserved over the Property

Note the reservations in favour of the landlord or neighbouring owners as specified in *.

Rights reserved include provisions similar to the rights granted as referred to in the section above. We do not regard these as a cause for concern. However note the various rights of entry for the landlord, neighbours and others.

  1. K) Management

The structure of the building (such as the roof, foundations, external and load bearing walls) are all treated as separate from the flat itself and are separately maintained by the landlord. This is a satisfactory arrangement because it ensures that the condition of the building and all other shared parts of the estate is maintained. Nevertheless, it also means that you have to pay a service charge to cover your share of the cost of maintenance and this charge is likely to increase as maintenance costs increase (see section D above). Further details are given in section 7 below.

  1. L) Buildings Insurance

The landlord insures the building as part of a block insurance policy and you will be liable to contribute your share as part of the service charge. You should consider such insurance as you may wish to take out to cover your contents.

  1. M) Shared Ownership

The percentage share you are buying is *%.

Note appendix 2 of the lease which contains examples of how the rent reviews are calculated. Note in particular appendix 3 which contains useful notes about shared ownership generally and we would strongly recommend that you familiarise yourself with these.

Please read section 15 of the Supplementary Notes and please note the following provisions in the lease.

Schedule * contains staircasing provisions generally.

Clause * and schedules * contain restrictions against selling, underletting or subletting the property and any landlord’s right of pre-emption.

By clause * the pre-emption period for this lease is *.

By clause * the landlord’s re-sale fee for this lease is *% of the *. This is a common provision and is acceptable to lenders.

  1. N) Agreements and Declarations

There are agreements, declarations or miscellaneous additional provisions at * which you should read through carefully.

  1. DOCUMENTS RELATING TO MANAGEMENT

The structure of the building and the communal parts of the estate are managed by the landlord – see sections L and M in section 6 above.

We enclose the following documents which we have received in relation to the management of the estate:

Form LPE1 completed on behalf of the landlord, which please read through carefully.

We await further information and documents relating to management of the estate and copies will follow once we receive them.

  1. REGISTERS OF THE LANDLORD’S TITLE

We enclose a copy of the registers of the landlord’s title out of which the lease and the seller’s leasehold title has been created. We also enclose a copy of the plan of the landlord’s title, showing the extent of the property owned by the landlord.

  1. SELLER’S PROPERTY INFORMATION FORM

This form contains information about the property supplied by the seller. Please read carefully through the form and please refer to section 7.1 of the Supplementary Notes for general information about it. Please also read the following sections of the Supplementary Notes: section 7.2 (as to boundaries), section 7.3 (as to planning and building regulations issues) and sections 7.4 and 7.5 (as to guarantees).

This form contains information about the property and is usually completed and supplied by the seller. However, the seller in this case has not supplied an information form. Please read section 7.1 of the Supplementary Notes for general information about the form and section 7.8 as to the implications of the form not being provided. Please also read the following sections of the Supplementary Notes: section 7.2 (as to boundaries), section 7.3 (as to planning and building regulations issues) and sections 7.4 and 7.5 (as to guarantees).

  1. SCHEDULE OF FIXTURES & FITTINGS

Please read carefully through this form to ensure that it reflects your understanding.

We await this form from the seller’s conveyancers and a copy will follow. Please then read carefully through this form to ensure that it reflects your understanding.

The seller has not supplied a schedule of fixtures and fittings, but states that the property is sold as it now stands. According to the seller, everything in the property now will remain on completion. However, if anything is removed, this may be difficult to prove after completion. If you are concerned, we suggest that you prepare a list of all the particular items that you wish to remain and we will ask the seller’s solicitors to attach it to the contract.

The seller has not supplied a schedule of fixtures and fittings or any information as to ownership of the contents. Because the seller has repossessed the property, the seller cannot guarantee that any item at the property is not subject to a prior claim, for example by the person or persons who were repossessed or by a hire purchase company if any item was not fully paid for.

  1. OTHER DOCUMENTS SUPPLIED BY THE SELLER

The seller has not supplied any other documents.

The seller has supplied the following further documents:

Contractor’s guarantee for *. Please read section 7.5 of the Supplementary Notes for information about guarantees.

Building guarantee paperwork (*). The property has the benefit of cover until *. Please read section 7.6 of the Supplementary Notes for information about building guarantees.

The property should have a building warranty until *. We await the paperwork and copies will follow. Please read section 7.6 of the Supplementary Notes for information about building guarantees.

Architect’s certificate. Please read section 7.7 of the Supplementary Notes for important information about the limitations of an architect’s certificate.

Indemnity Policy for *. Please read section 9 of the Supplementary Notes for important information about indemnity policies.

  1. SELLER’S LEASEHOLD PROPERTY INFORMATION FORM

This form has been supplied by the seller and contains information about leasehold aspects of the property. Please read it through carefully. If you have any questions about it or if you think that any of the information given is incorrect, please let us know.

This form contains information about leasehold aspects of the property and is usually completed and supplied by the seller. However, the seller in this case has not supplied this form. Please read section 7.8 as to the implications of the form not being provided.

  1. THE PURCHASE CONTRACT

The contract is a binding agreement between you and the seller. We recommend that you check the main details including your names, the property description and purchase price and then read section 8 of the Supplementary Notes for further important information about the contract.

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