I am in the process of selling my apartment in Henfield and the estate agent has just e-mailed to advise that the buyers are switching property lawyer. The excuse is that the mortgage company will only work with property lawyers on their conveyancing panel. On what basis would a leading lender only work with certain lawyers rather the firm that they want to choose to handle their conveyancing in Henfield ?
Banks have always had an approved set of law firms they are willing to work with, but in recent years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 15 years.
Lenders point to the increase in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to maintain. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices 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. The buyers are not going to have any impact on this.
I purchased a freehold residence in Henfield yet pay rent, why is this and what is this?
It is rare for properties in Henfield and has limited impact for conveyancing in Henfield 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 date back many centuries, but the Rent Charge Act 1977 barred the generation of new rentcharges from 1977 onwards.
Previous rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be dispensed with completely.
Do the Building Society Association intend to launch a online directory to list solicitors on the Norwich and Peterborough Building Society conveyancing panel for instance in Henfield?
We would not expect to be advised of any intention on the part of the BSA to develop such a search facility.
This question may be naive but I am wet behind the ears as FTB of a two bedroom flat in Henfield. Do I collect the keys to the house on completion from my lawyer? If so, I will appoint a local conveyancing solicitor in Henfield?
On the day of completion you will not be required to go to the conveyancers office in Henfield. Conveyancing lawyers for you will electronically transfer the purchase money to the owner’s conveyancers, and shortly after the monies have arrived, you should be called to pick up the keys from the selling Agents and start moving into the property. Usually this occurs between 1 and 3pm.
We previously selected conveyancers located in Henfield on the HSBC solicitor approved list. They have just invoiced me an additional amount for dealing with the HSBC mortgage. Is this a supplemental conveyancing fee specified by HSBC?
As unfair as it may appear, as long as it’s in their Terms and Conditions or estimate then yes your property lawyer is entitled to charge a fee for this. The fee is not set by HSBC but by your Henfield conveyancer. Some firms on the HSBC panel will levy an ‘acting for lender’ fee and others do not.
After months of negotiation I have agreed a price on an apartment in Henfield. My financial adviser recommended their conveyancers. I paid an upfront payment of £150. A couple of days later, the solicitor contacted me embarrassingly acknowledging that they were not on the Barclays conveyancing panel. Am I right in thinking that I should be due a refund?
You should be able to recover this from the law firm if they were not on the Barclays panel. They should have asked at the outset which lender you were obtaining a mortgage with. An important lesson to readers of this site is to check that the lawyers are on the appropriate lender panel.
Should I instruct a Henfield conveyancing solicitor in close proximity to the house I am hoping to buy? An old friend can perform the legal formalities but her office is 200miles drive away.
The benefit of a local Henfield conveyancing firm is that you can pop in to sign documents, present your ID and pester them if necessary. They will also have local knowledge which is a plus. However nothing is more important than finding someone that will do a good and efficient job. If other friends have instructed your friend and in the main were impressed that should trump using an unfamiliar Henfield conveyancing solicitor just because they are local.
My step-son is embarking on her first house purchase, he had his mortgage in principle. When the offer was accepted on apartment we rang the lender to progress the mortgage application. We were very surprised to learn that banks do not accept all property lawyer, they have to be on a list, is this legal?
Banks ordinarily restrict either the type or the number of conveyancing firms on their approved list of lawyers. Typical examples of such restriction(s) being that a firm must have two or more partners. In addition to restricting the type of firm, some have decided to limit the number of firms they use to represent them. You should note that banks have no responsibility for the quality of advice provided by any Henfield property lawyer on their panel. Mortgage fraud was a key driver in the rationalisation of conveyancing panels a few years ago and whilst there are differing views about the extent of solicitor involvement in some of that fraud. Statistics from the Land Registry reveal that thousands of law firms only carry out one or two conveyances a year. Those supporting conveyancing panel cuts ask why law firms should have the right to be on a Lender panel when clearly, conveyancing is not their speciality. To put it another way; would you want a conveyancing solicitor to represent you if you were charged with a crime? Presumably not.