Unfortunately I am unable to travel far from Crowland. What is the rationale as to why all Crowland solicitors are not on all mortgage company panels?
Banks highlight the fact that solicitor-led fraud is thought to be responsible for millions of pounds of fraud every year.The dismissal of law firms from lender panels started with the rise in mortgage fraud, which prompted a thematic review by the Financial Services Authority in 2011. Its conclusions included recommendations for mortgage companies to review their conveyancing panels, which triggered a major policy change in the sector. It resulted in mortgage companies culling less reputable firms off their books of approved lawyers .
Our solicitor has discovered a a legal deficiency with the lease for the apartment we are purchasing in Crowland. The other side have offered title insurance as a workaround. We are happy with insurance and will cover the costs. Our lawyer has advised that he must be satisfied that the lender is willing to move forward with this solution. Are we the client or is the mortgage company ?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the lender are the client. Your solicitor must comply with the UK Finance Lenders’ Handbook specifications. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the bank can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your lawyer will have no choice but to discontinue acting for you.
The mortgage over my property is with Clydesdale for my property in Crowland. Conveyancing was finalised months ago. If I am intending to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Clydesdale?
You must advise Clydesdale prior to letting out your property as this is likely to be a breach of Clydesdale’s mortgage conditions. It may be that Clydesdale will permit you to let out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Clydesdale directly. It should not be necessary to do this via a Clydesdale conveyancing panel solicitor.
I was told four weeks ago that my mortgage has been agreed to by Principality. Is it usual for Principality to only issue the offer once my solicitor in Crowland is approved on their conveyancing panel? Principality have asked my solicitor to see a copy of their PI Insurance.
Mortgage companies tend not to not issue an offer until they have details of a lawyer on their panel. It can take a few weeks for Principality to deal with your lawyer's application to be on the Principality conveyancing panel. There's no guarantee that your solicitor will be accepted.
Coventry BS have agreed my home loan in principle, my bid on a house in Crowland has been agreed to, now what?
The property agent will wish to be informed of your conveyancer's details (ensure that the solicitors are on the lender’s approved list). Call up Coventry BS or your financial adviser and finish off any appropriate paperwork. Coventry BS will instruct a valuer who will get in contact with the estate agent or vendor to book a slot for the valuation to happen. Once carried out (assuming no problems) it takes on average ten days for the mortgage offer to be issued. Coventry BS will send the offer to you and your lawyers. The transaction will then take it’s course according the nature and complexity of the conveyancing in Crowland.
I have been told that property searches are the main cause of stalling in Crowland house deals. Is this right?
The Council of Property Search Organisations (CoPSO) released conclusions of research by MoveWithUs that conveyancing searches do not figure within the common causes of delays during the legal transfer of property. Local searches are not likely to be the root cause of slowing down conveyancing in Crowland.
I'm purchasing my first flat in Crowland with a loan from Lloyds TSB Bank. The builders would not reduce the price so I negotiated five thousand pounds worth of extras instead. The house builders rep told me not reveal to my solicitor about this extras as it could put at risk my mortgage with the lender. Is this normal?.
All lenders require a Disclosure of Incentives Form from the builder of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I've recently found out that there is a flying freehold issue on a property I have offered on a fortnight ago in what should have been a simple, chain free conveyancing. Crowland is where the house is located. Can you shed any light on this issue?
Flying freeholds in Crowland are rare but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Crowland you must be sure that your lawyer goes through the deeds thoroughly. Your mortgage company may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Crowland may ascertain that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold property.