Gedye and Sons

SOLICITORS FROM THE CITY TO THE COUNTRY

London

020 3427 5078
infoOB@gedye.co.uk

The Lakes

01539 532313
info@gedye.co.uk

Monday 25th September 2017

Things to consider when buying a contract reassignment

I wrote an article a couple of years ago about off plan re- assignments and the interest generated since has prompted me to update that article and add some of the points that have come to light on transactions since.

Firstly, some clients do not seem aware of the restricted mortgage market for such purchases. In the past virgin money was one of the only lenders but they have now withdrawn from the market for reasons unknown.

Clydesdale Bank and Woolwich (Barclays) both seem to still be active in this market but it is important that you make it very clear to your broker from the outset, the nature of the purchase as the mortgage products are different to a usual purchase and you therefore run the risk of thinking you have a suitable mortgage product only to find you cannot then use it.

In particular, the loan to value figure, which the lender will base their offer on, is the original price agreed by the first buyer with the developer and NOT what you agree to pay to the assignor. You may be unable to borrow sufficient money to make up the full price. Woolwich, in particular, need to be made aware of the fact that the price in the transfer deed to you will not be the same as the price you are ultimately paying overall.

Secondly, when negotiating the offer which you make with the agents, please take into account when you will be paying the “uplift” or profit that you will be paying the assignor.
You may be asked to pay this upon assignment of the contract as opposed to completion of the purchase with the developer.

You may also be asked to pay a holding deposit to the agent which we would recommend that you resist as this can add greatly to the complexity of the financial arrangements, along with developers often offering the original buyer a sum towards legal costs, which are rarely if ever paid towards your costs.

Finally, with stricter anti money laundering regulations now in place and due to become even stricter, the developer will often ask for considerable detail about you and your source of funding for the purchase before they will give consent to any assignment of the contract in your favour.

Mark Jones
September 2017

All news & events

Buying a newly built home

Once you have found that special place that you love; maybe its ideal for work / has that outside space you have been craving/ has room for a home office. Then the real fun begins!

Buying a new home off plan

It is common practice for developers to offer some or even all of the units on a development for sale long before construction work has finished. It can significantly reduce their borrowing costs but how does it affect you as a buyer?

Things to consider when buying a contract reassignment

I wrote an article a couple of years ago about off plan re- assignments and the interest generated since has prompted me to update that article and add some of the points that have come to light on transactions since.

The Law Society propose ‘single test’ to diminish stamp duty fears

Clear instructions to your solicitor/conveyancer on any property purchase is crucial and even more so now following the Stamp Duty Land Tax (SLDT) changes which come into force from 1 April 2016.

Mum, Dad, will you help me with my deposit please?

Buying your first property can be an exciting time, but it is also a huge investment. Most buyers will have saved hard for years on end just to fund their deposit

Buying an off plan re-sale apartment

Mark Jones, Director and Head of our Conveyancing department considers the risk to the unwary buyer.

Success for Solicitor who achieves Associate Membership of ACTAPS

We are very pleased to announce that Justin Roberts, Litigation Solicitor at Gedye & Sons has been accepted as an Associate Member of The Association of Contentious Trust and Probate Specialists (ACTAPS).

Gedye & Sons support “Will to Remember” Scheme

Alzheimer’s Society newest scheme ‘Will to Remember’ launched on Tuesday 27th May 2014 in the North West (Cumbria, Lancashire, Greater Manchester, Merseyside and Cheshire) in partnership with Solicitors for the Elderly.

Purchasing off plan re-sales presents challenges

Mark Jones as Head of our conveyancing department considers the potential risks of this increasingly popular phenomena.

FATCA legislation in operation by autumn 2014

Trusts, Trustees, Financial Institutions and Solicitors need to consider the new legislation. In this article Richard Roberts, Mark Jones and Sarah Murphy look at what it means and who it affects.

Blackwell House “Art Fund” evening

Gedye and Sons in association with Art Fund Cumbria are delighted to announce a reception and drinks evening at Blackwell House on Thursday 5th June 2014 from 5.30pm.

Gedye & Sons awarded with WIQS Accreditation.

Grange over Sands and Old Bailey based Gedye & Sons becomes one of the first twenty firms nationwide to obtain the Law Society’s new Wills and Inheritance Quality Scheme accreditation.

Historic Grange poster acquired by firm

Art lover and Gedye & Sons director Richard Roberts acquires historic LMS poster of Grange over Sands from Christie’s auction held in London.

Gedye & Sons Awarded WIQS Accreditation

The much published scheme which demonstrates an excellence in their field has seen the Law Society accredit the first group of law firms to its new Wills and Inheritance Quality Scheme (WIQS)

Richard Robert’s radio interview

Thursday 17th January 2012 saw Richard Roberts present a lecture at Clarke Willmott LLP in Bristol. This was as part of an evening sponsored by them for the Halycon network. Halycon is a professional network for the LGBT community.