I am in the process of selling my flat in Broadway and the EA has just text me to advise that the purchasers are switching property lawyer. I am told that this is due to the fact that the lender will only engage with solicitors on their conveyancing panel. Why would a leading lender only deal with certain law firms rather the firm that they want to select for their conveyancing in Broadway ?
Lenders have always had an approved set of law firms they are content to work with, but in the last few years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Mortgage companies point to the increase in fraud by way of justification for the cull – criteria have been narrowed as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your buyers are unlikely to have any impact on this.
In what way does my ID and proof of funds have anything to do with my conveyancing in Broadway? Why is this being asked of me?
To satisfy the Money Laundering Regulations any Broadway conveyancing firm will require proof of identity in all conveyancing matters. This is normally satisfied by provision of a passport and an original bank statement or utility account evidencing where you reside.
In accordance with Money Laundering Regulations, conveyancers are duty bound to check not only the ID of conveyancing clients but also the source of monies that they receive in respect of any matter. An unwillingness to disclose this may lead to your lawyer terminating their relationship with you, as clearly this will cause a conflict between the set Regulations and a refusal to disclose.
Your property lawyers are duty bound to inform the relevant authorities should they consider that any amounts received by them may contravene the Money Laundering Regulations.
I am considering mortgaging my flat in Broadway, does my lawyer have to be on the Nationwide Conveyancing panel?
There is nothing to stop you using your solicitor, but Nationwide will insist on their interests being represented by a firm on their conveyancing panel. There is much more potential for delays and confusion with two solicitors involved, and it will undoubtedly be more expensive too.
What will a local search tell me regarding the property we're purchasing in Broadway?
Broadway conveyancing often starts with the ordering local authority searches directly from your local Authority or through a personal search organisations for instance Searchflow The local search plays an important part in many a Broadway conveyancing purchase; as long as you don’t want any unpleasant once you have moved into your new home. The search will provide data on, amongst other things, details on planning applications applicable to the premises (whether granted or refused), building control history, any enforcement action, restrictions on permitted development, nearby road schemes, contaminated land and radon gas; in all a total of 13 topic sections.
Are there restrictive covenants that are commonly picked up during conveyancing in Broadway?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the legal transfer of property in Broadway. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
Due to the input of my in-laws I had a survey completed on a property in Broadway in advance of appointing solicitors. I have been advised that there is a flying freehold overhang to the house. The surveyor advised that some lenders will refuse to give a loan on a flying freehold house.
It varies from the lender to lender. Lloyds has different requirements for example to Halifax. If you contact us we can look into this further via the appropriate bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Broadway. Conveyancing will be smoother if you use a solicitor in Broadway especially if they are accustomed to such properties in Broadway.