I am 3 weeks into the sale of my apartment in Somerset and the EA has just called to say that the buyers are switching conveyancer. I am told that this is due to the fact that the bank will only work with solicitors on their approved list. On what basis would a major mortgage company only deal with certain law firms rather the firm that they want to select for their conveyancing in Somerset ?
UK lenders have always had panels of law firms that can represent them, but in recent years big names such as Yorkshire Building Society, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Lenders justify this action to a rise in fraud by way of justification for the reduction – criteria have been narrowed as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is being contacted daily by practices that have been removed from panels. Some are unaware that 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.
The vendors of the house we are looking to purchase are using a conveyancing practitioner in Somerset who has suggested a preliminary agreement with a non-refundable deposit 10k. Is it wise to enter into such agreements?
This kind of contract is unusual in Somerset, conveyancers are often inclined to direct clients away from them as they detract from focusing on the main conveyancing focus and if you end up losing your deposit then the lawyer is left exposed. Secondly, there is no guarantee that just because the vendor has executed a lock out contract they will sell to you. They may be in contravention of the contract if they receive a big enough financial inducement to do so because an aggrieved purchaser with the benefit of a exclusivitycontract will still be duty bound to show losses as a consequence of the breach and these may not amount to the extra amount that your vendor may secure by breaking the agreement, however morally reprehensible it undoubtedly is.
What happens if my solicitor is removed from the Skipton Solicitor panel ahead of completing my conveyancing in Somerset?
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.
My stepmother advised me that in purchasing a property in Somerset there could be various restrictions limiting what one can do in terms of external alterations to a property. Is this right?
There are a number of properties in Somerset which have some sort of restriction or requirement of consent to carry out external changes. Part of the conveyancing in Somerset should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
I have a mortgage with HSBC for my property in Somerset. Conveyancing was finalised a year ago. Should I wish to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform HSBC?
You must advise HSBC in advance of renting your property as this is likely to be a breach of HSBC’s mortgage conditions. In many cases banks or building societies will permit you to let 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 HSBC directly. You need not do this via a HSBC conveyancing panel lawyer.
Having read lots of mortgage guides, I note that it is considered advisable to get your house surveyed prior to buying it. When I asked my local Somerset solicitor - who is on the Barclays conveyancing panel - on this she said they don't do this and I need to contract an independent surveyor. Is that normal?
Barclays will need an independent valuation of the property. Your lawyer will not arrange this. Usually Barclays will appoint their own surveyor to do this, and you will have to pay for it. Remember that this is a valuation for mortgage purposes and not a survey. You may wish to consider appointing your own Somerset surveyor to carry out a survey or prepare a home buyers report on the property. It is up to you to satisfy yourself that the property is structurally sound before you buy it. If the survey or report reveals that building work is needed, you should tell your solicitor. You may wish to renegotiate with the seller.
Due to the guidance of my in-laws I had a survey completed on a property in Somerset prior to instructing lawyers. I have been advised that there is a flying freehold overhang to the house. Our surveyor advised that some lenders will not issue a mortgage on this type of premises.
It depends who your proposed lender is. Santander has different requirements from Nationwide. If you call us we can check via the appropriate mortgage company. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Somerset. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Somerset to see if the conveyancing costs will increase in light of this.
Am I best advised to instruct a Somerset conveyancing lawyer based in the area that I am hoping to buy? We have a good friend who can perform the legal formalities but her office is 400miles away.
The benefit of a high street Somerset conveyancing firm is that you can drop in to execute documents, deliver your identification documents and apply pressure on them where appropriate. Having local Somerset know how is a benefit. That being said 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 they were content that should trump using an unfamiliar Somerset conveyancing solicitor solely due to them being Somerset based.