I am one month into the sale of my ground floor flat in Congleton and the EA has just telephoned to advise that the purchasers are switching property lawyer. The reason given is that the lender will only engage with solicitors on their conveyancing panel. Why would a major mortgage company only deal with specific law firms rather the firm that they want to choose to handle their conveyancing in Congleton ?
UK lenders have always had panels of law firms they are willing 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 acted for them for more than 25 years.
Banks point to the increase in fraud by way of justification for the reduction – criteria have been stiffened as a smaller panel is easier to monitor. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices that have been removed from panels. Plenty of firms are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your purchasers are not going to have any sway in the decision.
My fiance and I are refinancing our apartment in Congleton with HSBC. We have a son 18 who lives with us. Our solicitor has asked us to disclose any adults other than ourselves who reside at the property. Our lawyer has now e-mailed a document for our son to sign, waiving any legal rights in the event that the property is forfeited by the lender. I have a couple of questions (1) Is this form unique to the HSBC conveyancing panel as he never had to sign this form when we purchased 3 years ago (2) Does our son by signing this compromise his entitlement to inherit the property?
On the face of it your lawyer has done nothing wrong as it is established procedure for any occupier who is aged 17 or over to sign the necessary Consent Form, which is purely to state that any rights he has in the property are postponed and secondary to HSBC. This is solely used to protect HSBC if the property were re-possessed so that in such circumstances, your son would be legally obliged to leave. It does not impact your son’s right to inherit the apartment. Please note that if your son were to inherit and the mortgage in favour of HSBC had not been discharged, he would be liable to take over the loan or pay it off, but other than that, there is nothing stopping him from keeping the property in accordance with your will or the rules of intestacy.
I purchased a freehold house in Congleton but still pay rent, why is this and what is this?
It is rare for properties in Congleton and has limited impact for conveyancing in Congleton but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges have existed for many centuries, but the Rent Charge Act 1977 barred the generation of new rentcharges from 1977 onwards.
Old rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence after 2037 is to be dispensed with completely.
We wanted to use a property lawyer in Congleton for our house move. Our broker informed us that our mortgage company Accord Mortgages Ltd won't deal with them. Why is this not regarded as unfair competition?
A bank may insist on an approved solicitor act for it. Borrowers are liable to bear the charges for this. Please make use of our search facility to find a solicitor to conduct conveyancing in Congleton on the Accord Mortgages Ltd member panel.
My stepmother advised me that in buying a property in Congleton there may be various restrictions prohibiting external alterations to the property. Is this right?
There are a number of properties in Congleton which have some sort of restriction or requirement of consent to external alterations. Part of the conveyancing in Congleton should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
Can you point me to a directory of Virgin Money panel conveyancers in Congleton on the Council of Mortgage Lender’s Website?
Unfortunately not yet. There is no such directory service on the Council of Mortgage Lenders or Building Society Association sites. A small selection of mortgage companies make their panel listings open the public on the web. If you are seeking to appoint a Congleton lawyer on the Virgin Money please make the most of our facility.
Completion of my purchase has taken place for my property in Congleton. Conveyancing was a necessary evil but I feel I should register my dissatisfaction about the lender. How do I make a complaint?
Almost all lenders have complaints procedures. Your first point of contact should be one of the lender’s branches or the Customer Services Department at head office. In most cases complaints to a lender are sorted out effectively and efficiently. If you feel the matter is not resolved you can write to Financial Ombudsman Service with full details of your complaint.
When it comes to leasehold conveyancing in Congleton what are the most common lease defects?
There is nothing unique about leasehold conveyancing in Congleton. Most leases are drafted differently and drafting errors can sometimes mean that certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:
-
Maintenance charge proportions which don’t add up to the correct percentage A provision for the recovery of money spent for the benefit of another party.
A defective lease will likely cause issues when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Lloyds TSB Bank, Bank of Scotland, and Clydesdale all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to grant the mortgage, forcing the purchaser to pull out.
I invested in buying a studio flat in Congleton, conveyancing formalities finalised August 1995. How much will my lease extension cost? Equivalent properties in Congleton with a long lease are worth £190,000. The average or mid-range amount of ground rent is £45 yearly. The lease runs out on 21st October 2088
With only 62 years left to run we estimate the premium for your lease extension to be between £17,100 and £19,800 plus legals.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we are not able to supply a more accurate figure without more comprehensive due diligence. You should not use the figures in tribunal or court proceedings. There are no doubt other concerns that need to be considered and clearly you should be as accurate as possible in your negotiations. You should not take any other action placing reliance on this information before seeking the advice of a professional.