We are buying a 1 bedroom apartment in Lutterworth with a mortgage. We like our Lutterworth conveyancer, but the bank says he's not on their "panel". We have to appoint one of the mortgage company panel solicitors or retain our Lutterworth solicitor as well as pay for one of their panel ones to act for them. We regard this is inequitable; is there anything we can do?
No, not really. Your mortgage offer is subject to its terms and conditions, one of which will be that lawyers will on the lender’s conveyancing panel. Until recently, most lenders had large numbers of law firms on their panels: a borrower could choose one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. Another option that might be available is for your Lutterworth conveyancing lawyer to apply to be on the conveyancing panel.
My solicitor has discovered a a problem with the lease for the property we are purchasing in Lutterworth. The seller’s lawyers have suggested defective title insurance as a workaround. We are happy with insurance and will pay for it. Our conveyancing practitioner has advised that he must be satisfied that the mortgage company is content with this solution. Who is the client here, us or the lender?
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 conveyancer must comply with the UK Finance Lenders’ Handbook conditions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the lender 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 property lawyer will have no choice but to discontinue acting for you.
How does conveyancing in Lutterworth differ for new build properties?
Most buyers of new build premises in Lutterworth approach us having been asked by the builder to sign contracts and commit to the purchase even before the residence is constructed. This is because developers in Lutterworth tend to buy the land, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct conveyancers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in Lutterworth or who has acted in the same development.
I was pointed in your direction by a few property agents in Lutterworth to select a property lawyer on your site. Is there a financial upside for Estate Agents to promote your lawyers rather than a competitor’s?
We refuse to offer any referral fee for directing people our way. We thought it would be too underhand to pay a commission because a client could think, ‘Why is the agent getting a kickback? Why am I not getting any benefit too?’ So we decided to step away from that.
Do you have any top tips for leasehold conveyancing in Lutterworth from the point of view of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Lutterworth can be bypassed if you instruct lawyers as soon as your agents start advertising the property and ask them to collate the leasehold information which will be required by the buyers’ representatives. If you have had conflict with your freeholder or managing agents it is very important that these are settled before the property is marketed. The purchasers and their solicitors will be concerned about purchasing a property where there is an ongoing dispute. You may have to bite the bullet and pay any arrears of service charge or settle the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal particulars of the dispute to the buyers, but it is clearly preferable to reveal the dispute as historic rather than unresolved. Many freeholders or managing agents in Lutterworth levy fees for supplying management packs for a leasehold home. You or your lawyers should find out the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus reducing delays. The average time it takes to obtain the necessary information is three weeks. It is the most common reason for delay in leasehold conveyancing in Lutterworth. If you have carried out any alterations to the premises would they have required Landlord’s approval? Have you, for example laid down wooden flooring? Lutterworth leases often stipulate that internal structural alterations or laying down wooden flooring require a licence from the Landlord approving such works. If you fail to have the approvals to hand you should not communicate with the landlord without contacting your lawyer in the first instance.
Lutterworth Conveyancing for Leasehold Flats - Examples of Questions you should consider Prior to buying
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Does the lease include onerous restrictions? Who are the managing agents? The answer will be useful as a) areas could cause problems in the building as the common areas may start to deteriorate if services are not paid for b) if the tenants have a dispute with the running of the building you will need to have all the details
How easy is it to change a solicitor as I need to find a Lutterworth based firm who is on the lender conveyancing panel. How simple is it to change conveyancer?
In the event that you have not formally appointed a conveyancer to commence the conveyancing and at this stage simply received an estimate as to costs, you're perfectly free to choose a different solicitor to carry out your work for you. The best way is to get recommendations from friends or family who have actually used the solicitor or conveyancer in Lutterworth that you're thinking of instructing.