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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.

  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 SELLER’S PROPERTY

This is the Land Registry title plan. It shows the extent of the property currently owned by the seller edged in red. Land Registry title plans are to a small scale and are not intended to show the precise location of each boundary.

For a plan of the property you are buying, please see section 6 below.

  1. REGISTERS OF TITLE OF THE SELLER’S PROPERTY

This is the Land Registry “Official copy of register of title”. It contains legal information about the property currently owned by the seller, 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.

Each section of the registers consists 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.

The information relates to the seller’s estate as a whole, not just to the plot you are buying.

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

After you have bought your property, we will register it at the Land Registry. The Land Registry will open a new set of registers relating specifically to your property. Some or all of the matters contained in the seller’s registers of title will be carried forward to the registers of your new title, depending on whether or not they relate specifically to your property.

  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 the seller’s title.

The following documents are filed with the seller’s title and copies are enclosed.

* dated the *.

* dated the *.

* 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 seller’s property as revealed in the register entries or filed documents.

Remember that these matters relate to the whole of the seller’s estate, not just to the plot you are buying. For matters that relate specifically to this plot, please refer to section 6 below.

Services

Please read section 2 of the Supplementary Notes for information about services rights generally.

Please see section 6 below for details of service rights and easements relating specifically to this plot.

Whilst there may be provisions in the registers relating to services, the development will be served by new services and we have no concerns.

The services rights and reservations are set out in *.

We regard the position as satisfactory.

There are no relevant provisions in the registers.

We are making further enquiries of the seller’s conveyancers.

Rights of way to the property

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

Please see section 6 below for details of any rights of way relating specifically to this plot.

Whilst there may be provisions relating to rights of way in the registers, the development will be served by new means of access and we have no concerns.

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.

The rights of way reserved 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 none recorded in the registers.

Restrictive covenants

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

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

In particular, there is 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 none recorded 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.

Estate management

This property is within a development for which a legal mechanism is in place to manage the communal parts of the estate and to charge out a proportion of the cost to the owners. Please read section 5.4 of the Supplementary Notes for important information about this.

The estate management provisions are contained in the transfer dated *. See *.

The estate management provisions are contained in a separate management deed dated *, a copy of which is enclosed.

The Management Company is owned by the owners on the estate and you will become a member of the company.

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 contained in the lease which relate specifically to this property.

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

There are none recorded in the registers.

  1. THE DRAFT SHARED OWNERSHIP LEASE

  2. A) Plan

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

  1. B) Length (“Term”) of the Lease

The lease is for * years from *.

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.

In any event, under the shared ownership procedure, you will have the right to a transfer of the freehold at any time after you have staircased to 100% at which point the lease will terminate.

  1. C) Rent

The starting gross rent is £* per annum. The starting specified rent is £* per annum.

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

Ground Rent

Most leasehold flats are subject to an annual “ground rent” which is payable to the landlord, however ground rents are unusual in a shared ownership lease of a house.

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 £* which is fixed for the term of the lease.

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 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 no provision for a service charge in this lease.

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

Service charges are lower for a house than a flat because there are no communal structural repairs of the building – repair of the building will be your responsibility. The repairs for which you will have to contribute are in relation to any communal parts of the estate.

  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.

Rights granted include user of shared private services (such as drains) passing under neighbouring land, rights of overhang, support and rights of entry onto neighbouring land for repair and maintenance purposes. We regard these as satisfactory.

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

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

There are no rights of way in the lease. Please ensure from inspection that you can obtain access to all parts of the property (including the buildings, any outbuildings, any garage and the garden) direct from the nearest public highway or adoptable road, without crossing over any part of anyone else’s land. If you cannot do this, please inform us.

There is a right to use the communal areas of the estate for recreational purposes.

  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.

A right of way on foot is reserved over *. You should ensure that the right of way is not obstructed.

A right of way on foot and with vehicles is reserved over *. You should ensure that the right of way is not obstructed.

  1. K) Management

The estate is managed by the landlord and provision for a service charge is made in the lease. The service charge is collected by the landlord. Further details are given in section 7 below.

No formal service charge is collected, although there is provision in the lease for the landlord to charge for communal expenditure and accounts may be levied as and when required.

  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.

Schedule * part * contains a draft of the transfer by which the freehold would be transferred to you in the event of final staircasing. In that event, you would cease to be bound by the terms of the lease, but would be bound by the terms of the transfer. Note in particular * (rights granted), * (rights reserved), * (covenants with which you would have to comply) and * (agreements and declarations).

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

Because the property is a house, not a flat, there is limited management by the landlord. You will be responsible for maintenance, repair and decoration of the property. The landlord will maintain any common parts of the estate.

You will appreciate that as this is a lease of a new property, there are no previous management accounts available and we are unable to predict how well the estate will be managed in the future.

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

We await further information and documents relating to management of the estate. Once we receive them, we will forward them to you separately.

  1. SELLER’S INFORMATION FORM

The seller has not supplied any information forms.

We enclose a form entitled * provided to us by the seller which contains information about the development. Please read carefully through the information supplied. If you have any questions about it or if you think that any of the information given is incorrect, please let us know.

Please read sections 7.2 of the Supplementary Notes (as to boundaries), section 7.3 (as to planning and building regulations issues) and sections 7.4 and 7.5 (as to guarantees).

  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 will have the benefit of cover for ten years. 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. 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 (particularly the section on New Property).

Please pay particular attention to the following clauses in the contract: *

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For a payment of £50.00 including VAT upon instruction, you can rest assured that should your conveyancing transaction fall through, for whatever reason, you will not be charged any solicitors fees. This fee is payable per transaction and therefore if you had a sale and purchase with us you would need to pay £50.00 for each.

Should your sale or purchase fall through without having taken the No Move/No Fee option we will charge a fee as is reasonable for the amount of work done by that stage.

A discount of £20.00 plus VAT (£24.00) is available on all transactions if you are one of the following:

  • First Time Buyer
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If you qualify for this discount, simply deduct this amount from your total online quote and advise us of your circumstances on instruction.

Terms and Conditions

Only one deduction per transaction (e.g if both cash buyer and buy to let landlord we deduct £24.00).

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