My fiance and I are planning to acquire a flat in North Finchley and have instructed a North Finchley conveyancing practice. Within the last couple of days our property lawyer has sent a preliminary report and documents to look through in anticipation of exchanging contracts shortly. Platform Home Loans Ltd have this evening contacted us to advise us that there is now an issue as our North Finchley solicitor is not on their conveyancing panel. What do we do from here?
When purchasing a property with mortgage finance it is usual for the purchasers' solicitors to also represent the mortgage company. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Quality Scheme. Your solicitor should contact your lender and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You are not legally obliged to appoint a law firm on the bank's conveyancing panel as you are at liberty to use your preferred North Finchley lawyers, in which case your legal fees may increase, and it may delay matters as you have another set of people involved.
All was ready to move into my new home in North Finchley next Friday. My solicitor now wants me to supply her with evidence of content and building insurance for the property as he says that he has to check this in his capacity as lawyer for the bank. What does the insurance need to cover?
Any lawyer on acting for lenders 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 instructions. These requirements are not limited to conveyancing in North Finchley.
Can you clarify what the consequences are if my lawyer’s firm is expelled from the Leeds Building Society Conveyancing panel ahead of completing my conveyancing in North Finchley?
First, this is a very rare occurrence. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
Should my solicitor be asking questions concerning flooding as part of the conveyancing in North Finchley.
Flooding is a growing risk for solicitors dealing with homes in North Finchley. Some people will acquire a house in North Finchley, completely aware that at some time, it may be flooded. However, aside from the physical destruction, if a house is at risk of flooding, it may be difficult to get a mortgage, satisfactory building insurance, or dispose of the property. There are steps that can be taken during the course of a house purchase to forewarn the buyer.
Conveyancers are not best placed to offer advice on flood risk, but there are a numerous checks that may be carried out by the buyer or on a buyer’s behalf which should give them a better appreciation of the risks in North Finchley. The conventional set of completed inquiry forms supplied to a buyer’s solicitor (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a usual question of the seller to find out whether the property has ever been flooded. In the event that the property has been flooded in past which is not notified by the seller, then a buyer may commence a claim for damages as a result of such an inaccurate response. The purchaser’s solicitors will also carry out an environmental report. This will indicate whether there is any known flood risk. If so, further investigations should be made.
I am looking for a flat up to £305k and found one round the corner in North Finchley I like with amenity areas and transport links nearby, the downside is that it only has 49 years unexpired on the lease. I can't really find anything else in North Finchley suitable, so just wondered if I would be making a grave error purchasing a lease with such few years left?
If you require a mortgage that many years may be a potential deal breaker. Discount the price by the anticipated lease extension will cost if it has not already been discounted. If the existing owner has owned the property for a minimum of 2 years you may ask them to start the process of the extension and pass it to you. An additional ninety years can be extended on to the existing lease term with a zero ground rent applied. You should speak to your conveyancing lawyer about this matter.
My wife and I have chosen a North Finchley conveyancing solicitor for our house purchase (FTB’s) and have spotted in the engagement letter that they are not overseen by the Financial Conduct Authority. Am I right to be concerned or is that the norm with conveyancer?
We can't see why they should be. Most conveyancer don't lend money. They should be regulated by the SRA, who set specific stipulations regulating monies sitting by them.