My husband and I are planning to buy a flat in Skipton and are in fact using a Skipton conveyancing practice. Within the last couple of days our solicitor has forwarded the sale agreement to be signed with a detailed report in anticipation of exchanging contracts shortly. Accord Mortgages Ltd have this evening contacted us to inform me that there is now an issue as our Skipton lawyer is not on their conveyancing panel. What do we do from here?
When purchasing a property with the benefit of a mortgage it is normal for the purchasers' lawyers to also represent the purchaser's lender. 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 Accreditation 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 and you may continue to use your own Skipton solicitors, in which case your legal fees may increase, and it will likely delay the transaction as you are adding another lawyer into the mix.
Why is leasehold purchase conveyancing in Skipton costs more?
Skipton leasehold properties involve far more paperwork than a freehold purchase, and therefore takes more time to examine and advise upon.Conveyancing will involve the lease having to be checked which is usually a lengthy document, queries raised to ensure that the covenants and conditions have been observed. If it is a flat there will be a management company in existence and the accounts of this will need to be checked and enquiries raised to ensure it is operating efficiently and that all monies due have been paid by the Seller to the company and if not ensuring that money is paid up to date or the appropriate undertakings obtained.
The mortgage over my property is with Santander for my property in Skipton. Conveyancing was finalised some time ago. Should I wish to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Santander?
Your original mortgage agreement with Santander will provide that you need their approval prior to renting your property as this is likely to be a breach of Santander’s mortgage conditions. It may be that Santander will allow you to rent 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 Santander directly. You need not do this via a Santander conveyancing panel firm.
It is unclear whether my bank obliges me to make sure the lease term for the flat is extended prior to the completion date. I have called my Skipton bank branch on a couple of occasions and was advised it wasn't an issue and they would lend. My Skipton conveyancing solicitor - who is on the lender conveyancing panel- telephoned to say that they refuse to lend based on their UK Finance Lenders’ Handbook minimum lease term requirements. I have no idea who is right.
Provided that the conveyancer is on the lender panel, they must adhere to the CML Handbook requirements for the bank. Unless your lawyer obtains specific confirmation in writing that the mortgage company 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 mortgage company to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
HSBC have agreed my mortgage in principle, my offer on a flat in Skipton has been accepted, what are the next steps?
Your property agent will want to know who your solicitors are (ensure that the lawyers are on the lender’s approved list). Telephone HSBC or your broker and complete any outstanding paperwork. HSBC will instruct a valuer who will get in contact with the selling agent or owners to arrange a slot for the valuation to happen. Once conducted (assuming no problems) it takes on average a week for the mortgage offer to be issued. HSBC will send the offer to you and your lawyers. The legal work will then take it’s course according the nature and complexity of the conveyancing in Skipton.
Yesterday I discovered that there is a flying freehold element on a house I have offered on a fortnight ago in what should have been a simple, no chain conveyancing. Skipton is where the house is located. Can you offer any opinion?
Flying freeholds in Skipton are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Skipton you must be sure that your lawyer goes through the deeds very carefully. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Skipton may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold residence.
Is it best to choose a Skipton conveyancing solicitor based in the area that I am buying? An old friend can conduct the conveyancing but his firm is located 400kilometers drive away.
The primary upside of using a high street Skipton conveyancing practice is that you can attend the office to execute documents, present your ID and pester them where appropriate. Having local Skipton know how is a bonus. However nothing is more important than finding someone that will pull out all the stops for you. If you know people who instructed your friend and the majority were happy that should surpass using an unknown Skipton conveyancing solicitor solely due to them being local.
Our conveyancing solicitor in Skipton has informed me that he requires proof of ID documents saying that this forms part of his retainer as a solicitor on the lender Solicitor panel. This is news to me - can I refuse?
Anti-terror and anti-money-laundering rules require Skipton conveyancing solicitors and licensed conveyancers to verify the identity of the person or body they are dealing with before they can accept their conveyancing business. The Client Care letter that you need to sign will no doubt confirm this. Your lawyer is right that the lender also require certain documents to be viewed. If a you refuse to provide ID verification documents, your conveyancer would not be able to accept instructions from you. Your lawyer also has obligations to obtain certain documents in accordance with the mortgage company's UK Finance Lenders’ Handbook requirements