I am one month into the sale of my maisonette in Rufford and the EA has just telephoned to say that the buyers are swapping law firm. I am told that this is due to the fact that the bank will only engage with solicitors on their conveyancing panel. On what basis would a leading lender only deal with certain law firms rather the firm that they want to appoint to handle their conveyancing in Rufford ?
Lenders have always had panels of law firms they are content to work with, but in the past few years big names such as Nationwide, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for more than 25 years.
Banks attribute this action to a rise in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to oversee. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms 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 unlikely to have any impact on this.
Our conveyancer has discovered a defect with the lease for the property we are purchasing in Rufford. The seller’s lawyers have suggested defective title insurance as a solution. We are happy with insurance and will pay for it. Our lawyer says that he must ensure that the bank is content with this solution. Are we the client or is the mortgage company ?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the bank are the client. Your solicitor must comply with the UK Finance Lenders’ Handbook provisions. 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 conveyancer will have no choice but to discontinue acting for you.
When it comes to mortgage companies such as Kent Reliance, do Rufford property lawyers incur an annual charge to be on the list of approved solicitors?
We are not aware of any lender fees to register on their panel, although some do levy an administration charge to deal with the processing of the conveyancing panel application.
I had a mortgage agreed in principle with HSBC. Rufford conveyancing lawyers are chosen. What is the average time that one could expect to receive a mortgage offer from HSBC?
There is no definitive answer here. Have HSBC conducted the valuation? Have you advised HSBC as to your lawyers' details and checked that your lawyers are on the HSBC conveyancing panel? Sometimes it can take as long as six weeks for a mortgage offer to be issued.
I have paid off my mortgage with HSBC. I assume I don't need a Rufford conveyancer on the HSBC panel to discharge the mortgage at the Land Registry. Am I right?
If you have finished paying off your HSBC mortgage, they may send you evidence showing that you have paid it off. Alternatively they may notify the Land Registry directly. The Land Registry need to see this evidence before they will remove the HSBC mortgage from the register. HSBC, and any evidence they send you, will determine the action you need to take. In cases where no conveyancer is acting for you and you have paid off your mortgage:
- but are not moving to another property
- where HSBC has sent the Land Registry the discharge electronically, and
- HSBC has instructed the Land Registry to do so
What does a local search reveal about the property I am purchasing in Rufford?
Rufford conveyancing often commences with the submitting local authority searches directly from your local Authority or via a personal search organisations for example PSG The local search is essential in every Rufford conveyancing purchase; as long as you wish to avoid any unpleasant once you have moved into your new home. The search will provide information on, amongst other things, details on planning applications relevant to the property (whether granted or refused), building control history, any enforcement action, restrictions on permitted development, nearby road schemes, contaminated land and radon gas; in all a total of thirteen subject areas.
How does conveyancing in Rufford differ for newly converted properties?
Most buyers of new build property in Rufford contact us having been asked by the seller to sign contracts and commit to the purchase even before the house is finished. This is because developers in Rufford usually acquire 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 property lawyers 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 Rufford or who has acted in the same development.
I opted to have a survey carried out on a house in Rufford before instructing lawyers. I have been informed that there is a flying freehold element to the property. The surveyor advised that some banks will refuse to give a loan on a flying freehold premises.
It varies from the lender to lender. HSBC has different instructions from Nationwide. If you e-mail us we can look into this further with the relevant lender. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Rufford. Conveyancing will be smoother if you use a solicitor in Rufford especially if they regularly deal with such properties in Rufford.