May 2008
No requirement for leasehold info — now or after June 1...
Sir,
THE article headed ‘HIPs not helping the market’ (EAN, April) indicates
a worrying lack of knowledge of the HIP legislation.
Marc Goldberg, head of residential sales at Hamptons International is quoted: “We
are certainly concerned about the proposed implementation on June 1 of requiring
a HIP to be in place prior to marketing a property – especially given the
current time delays that are involved” and he further states leasehold
management information contained within the HIP “will cause major delays
given the standard response times of management companies to provide this”.
Neither in the current legislation, nor after June 1 is there a requirement for
leasehold management information to be in a HIP in order to start marketing.
Nor is there any requirement for local authority searches, drainage searches
or local land charge searches. Not even the lease has to be included to market
the property.
In the case of an existing registered property, there are only two items that
are needed to commence marketing (apart from the generic index and sale statement).
These are: an Energy Performance Certificate and title evidence. It is indisputable
that an EPC can be obtained within two to three days, including weekends. Title
evidence is obtainable within about five minutes.
Even for an unregistered title all that is needed is the report of a search of
the Land Registry index map, available also within two to three days. No lease,
no management information, no searches required.
An efficiently-procured HIP can be available within two or three days maximum.
If there is truly a need for faster action, I am certain an EPC could be obtained
within 24 hours. Where is the problem? If nothing else, the June 1 requirements
will remove some of the confusion that abounds and allow the public to know (and
be easily advised) what they should expect.
The request for the leasehold information, searches etc is either (a) put in
place when (or very soon after) marketing starts or (b) after a buyer has been
found and their conveyancer commences their investigatory process. To achieve
the presumed objective of exchange of contracts, which of these choices will
present a speedier conclusion and be less likely to disrupt a chain of transactions?
Does it really need spelling out? I hope not.
RICHARD LARGE,
Kingsbridge, Devon.
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