I am one month into the sale of my apartment in Harlow and the EA has just telephoned to say that the buyers are swapping conveyancer. The excuse is that the mortgage company will only engage with property lawyers on their approved list. On what basis would a leading mortgage company only engage with specific law firms rather the firm that they want to appoint to handle their conveyancing in Harlow ?
Lenders have always had panels of law firms that can act for them, but in the past few years big names such as Yorkshire Building Society, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 15 years.
Mortgage companies point to the increase in fraud by way of justification for the reduction – criteria have been tightened as a smaller panel is easier to maintain. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some 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. The buyers are not going to have any sway in the decision.
All was ready to move into my new home in Harlow next Tuesday. I have now been asked to send a copy of my building insurance schedule by my solicitor as he says that he has to check this in his capacity as lawyer for the lender. What risks does the bank expect the insurance to cover?
All property lawyers on acting for mortgage companies would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s Part 2 requirements. These obligations are not limited to conveyancing in Harlow.
This question may be naive but I am unseasoned as a 1st time purchaser of a two bedroom flat in Harlow. Do I collect the keys to the house on the completion date from my lawyer? If so, I will instruct a High Street conveyancing solicitor in Harlow?
On the day of completion you do not need to go to the conveyancers office in Harlow. Your solicitors will electronically transfer the purchase money to the owner’s conveyancers, and shortly after the monies have arrived, you should be invited to receive the keys from the selling Agents and move into your new home. Usually this happens between 1 and 3pm.
The mortgage over my property is with Lloyds for my property in Harlow. Conveyancing has been completed months ago. In the event that I decide to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Lloyds?
Your original mortgage agreement with Lloyds will provide that you need their approval prior to letting out your property as this is likely to be a breach of Lloyds’s mortgage conditions. In many cases banks or building societies 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 Lloyds directly. It should not be necessary to do this via a Lloyds conveyancing panel firm.
It is unclear whether my lender requires a lease extension. I have telephoned my Harlow bank branch on a couple of occasions and was told they are content with the situation and they would lend. My Harlow conveyancing solicitor - who is on the lender conveyancing panel- called to say that they refuse to lend based on their published requirements. I simply don't know who is right.
Provided that the solicitor is on the bank approved list, she or he must comply with the Council of Mortgage Lenders’ Handbook conditions for the bank. Unless your lawyer obtains specific confirmation in writing that the lender will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the lender to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
I used Wolstenholmes a few years ago for my conveyancing in Harlow. Now, I need the documents but the law firm has closed. What do I do?
You should contact the Solicitors Regulatory Authority (SRA) to help locate your conveyancing files. They can be contacted on please contact on 0870 606 2555. Alternatively, you should use their online form to make an enquiry. You will need to provide the SRA with as much information as possible to assist their search, including the name and address in Harlow of the conveyancing firm of solicitors you previously used, the name of conveyancing solicitor with whom you had dealings, and the date on which you last had dealings with the firm.
I have been advised by a number of estate agents in Harlow to choose a solicitor using your seach tool. Is there a financial inducement for Estate Agents to recommend your services rather than another?
We refuse to make any referral fee for pointing buyers and sellers in our direction. We found it would be just too difficult to pay a commission as home movers will think, ‘How come the agent getting a kickback? Why am I not getting any benefit too?’ So we decided to step away from that.
My wife is buying a leasehold apartment in Harlow. Conveyancing estimates are averaging around £1700. Is that reasonable?
The average cost in 2014 for conveyancing in Harlow was £1,395 not including Land Tax and HM Land Registry fees.