Daveena Seepaul, Head of Residential Property at local solicitors Edwards Duthie Shamash, takes a look at some of the many pitfalls and problems that can arise from residential purchase transactions
Having dealt with a range of residential purchase transactions, our team has seen many pitfalls and problems that can arise. Most issues can be resolved; however, some can derail the transaction. Many of these pitfalls can be spotted early on so your solicitor can take appropriate steps to minimise risk.
Building regulations
Missing permissions for planning and building regulation approvals could mean that works already carried out are unauthorised and may even be unsafe. Purchasing a property with missing permissions may also result in a loss of value. You may even have to pay to reverse the works so they are brought to current building regulation standards. An indemnity policy is a possible solution, but it does not confirm the quality of the work that has been done.
Potential developments
When a Local Authority Search is carried out, it is specific to that property. Information is not always provided on neighbouring properties. To some degree, your solicitor will obtain information from the seller’s solicitors regarding any information their client holds regarding neighbouring properties. In addition, you can check with the relevant council departments for information.
Trees and shrubs
Some trees in the UK are legally protected, which means you will need the council’s permission to lop, prune or remove them. The local search results obtained by your solicitor should show if there are any Tree Preservation Orders in place.
Lease term
If you are buying a flat or other leasehold property, the unexpired length of the term of the lease needs to be carefully checked. If the term drops below 80 years, this can cause problems and affect your mortgage offer. Some lenders even require a minimum lease term of 95 years. A shorter term could also cause difficulties in selling the property in the future.
Service charge demands
If you are buying a flat or maisonette, enquiries need to be raised regarding anticipated service charges that you will be required to pay. There could be major works to the block that could include roof repairs or refurbishments that could run into thousands of pounds. The cost of these works can be on top of your usual annual service charge, especially if there is no sinking fund held by the management company or landlord.
There are a variety of complex issues that can arise in property transactions and the above are only a few examples you may encounter. A skilled property solicitor will navigate you through your transaction.
Edwards Duthie Shamash is located at 149 High Street, Wanstead, E11 2RL. For more information, call 020 8514 9000 or visit edwardsduthieshamash.co.uk
