I am one month into the sale of my maisonette in Swansea and the EA has just text me to warn that the buyers are switching law firm. The reason given is that the bank will only engage with solicitors on their conveyancing panel. Why would a big named lender only deal with certain law firms rather the firm that they want to appoint for their conveyancing in Swansea ?
UK lenders have always had panels of law firms they are content to work with, but in the last few years big names such as HSBC, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for many years.
Lenders justify this action to a rise in fraud by way of justification for the cull – criteria have been narrowed as a smaller panel is easier to keep an eye on. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some 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 purchasers are unlikely to have any impact on this.
I am hoping to complete my purchase in Swansea next Monday. My lawyer now wants me to supply her with proof of content and building insurance for the property as as she informs me that she is duty bound to validate that it is in order for the mortgage company. What does the insurance need to cover?
Any lawyer on acting for banks 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 UK Finance Lenders’ Handbook conditions. These obligations are not limited to conveyancing in Swansea.
What does my ID and proof of funds have anything to do with my conveyancing in Swansea? Why is this being asked of me?
Swansea conveyancing solicitors and indeed property lawyers throughout the UK have an obligation under money laundering regulations to check the ID of any client with a view to satisfy themselves that clients are who they say they are.
Conveyancing clients are required to disclose two forms of certified ID; proof of ID (typically a Passport or Driving Licence) and evidence of address (typically a Utility Bill less than 3 months old).
Evidence of source of funds is also required in compliance with the money laundering laws as solicitors have a duty to ensure that the monies you are utilising to buy a property (be it the exchange deposit or the total purchase price where you are buying without a mortgage) has originated from an acceptable source (such as employment savings) rather than the fruits of illegitimate activity.
Will my solicitor be making enquiries concerning flooding during the conveyancing in Swansea.
Flooding is a growing risk for lawyers dealing with homes in Swansea. Plenty of people will buy a property in Swansea, 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, suitable building insurance, or sell the property. Steps can be carried out during the course of a house purchase to forewarn the buyer.
Lawyers are not best placed to give advice on flood risk, but there are a various checks that may be carried out by the purchaser or on a buyer’s behalf which should give them a better understanding of the risks in Swansea. The standard information supplied to a purchaser’s solicitor (where the Conveyancing Protocol is adopted) incorporates a usual question of the seller to determine if the property has suffered from flooding. If flooding has previously occurred and is not disclosed by the seller, then a buyer may bring a claim for damages resulting from an incorrect answer. The buyer’s solicitors will also conduct an enviro report. This should indicate if there is a recorded flood risk. If so, more detailed inquiries should be initiated.
I've recently found out that there is a flying freehold issue on a property I have offered on last month in what was supposed to be a simple, chain free conveyancing. Swansea is where the house is located. Can you shed any light on this issue?
Flying freeholds in Swansea are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Swansea you must be sure that your lawyer goes through the deeds diligently. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Swansea 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 premises.
Should I be concerned by third parties that I am dealing with are encouraging me to use a nationwide conveyancing firm as opposed to a High Street Swansea conveyancing firm?
As with many service providers, often suggestions from family and friends can be worth their weight in gold. Yet there are numerous players in a conveyancing deal; estate agents, financial adviser and lenders might all suggest conveyancers to instruct. On occasion these lawyers might be known to one of the organisations as being good in their field, but occasionally there exists a commercial relationship behind the endorsement. You are at liberty to choose your own conveyancer. You need to be aware that most banks specify a panel list of solicitors you are obliged to use for the mortgage related work in your conveyancing.