Wednesday 30 July 2014
It is welcome news (to most) that property prices are on the up throughout the country.
Many people having obtained a mortgage over the last 10 years, have been heavily burdened by their main asset being in negative equity- which ultimately has restricted parties from moving from their properties and in many cases moving to a bigger property , if families are being extended.
In addition to this news, the main lending institutions are certainly lending again and in my experiences of recent , more mortgages are certainly being obtained. This can only be a good thing for the economy and indeed for anybody seeking credit to also start a business or extend an existing business-thereby creating more employment.
What I would say as a Practising Solicitor dealing with mortgage applications regularly, is that the criteria to be met and documentation to be provided has been extended. For example, should money being gifted by another party to assist with the property purchase, be offered, the lending institutions are seeking a Deed of confirmation to be executed, to ensure that it is in fact a gift and that same will not create any competing right against their security over the property.
Extensive documentation can also be requested and furthermore deeds need to be sworn to verify matters, by the borrowers. Often the acting Solicitors have to vouch for certain matters, on behalf of their clients, for the benefit of the lending institution.
The lending institutions have placed a huge focus on ensuring that their rights will not be competed against by any third party and that they have the strongest security over the property.
I for one do not believe that this is a bad thing and tighter regulation to ensure that a person is obtaining finance within their means , will avoid problems down the line, for all involved.
Notwithstanding the above, the important point to note, is that financing is certainly available to the right candidates, allowing people access the property market again.
Should you wish to discuss Mortgage Applications and indeed purchasing and selling a property with me, I would be delighted to discuss same with you at a mutually convenient time.
Friday 18 July 2014
Good marketable title is based on a number of elements. For example, a Solicitor must ensure that the property is free from any burdens or conflicting rights, such as, rights of ways affecting a property - whereby another property owner has an entitlement to use the property being sold or acquired, in some way. It must be noted that, if the property is not free from any types of burdens, the duty falls on the Solicitor to ensure that the position with any adjoining property owner, staking a right over the property being sold, has in fact been regularised and indeed registered in either the Land Registry or the Registry of Deeds, thereby ensuring its validity.