I am nearing exchange of contracts for my ground floor flat in Tisbury and the EA has just e-mailed to say that the purchasers are changing their solicitor. The reason given is that the bank will only engage with solicitors on their approved list. On what basis would a major lender only work with certain lawyers rather the firm that they want to choose to handle their conveyancing in Tisbury ?
Mortgage companies have always had an approved set of law firms they are content to work with, but in the past few years big names such as Santander, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for decades.
Lenders blame a rise in fraud by way of justification for the pruning – criteria have been narrowed as a smaller panel is easier to keep an eye on. Banks tend not to disclose 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. Plenty of firms 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. Your buyers are unlikely to have any sway in the decision.
Having sold my house in Tisbury last January but the buyer keeps calling me complaining that their solicitor needs to hear from myconveyancer. What are the post completion sale legalities now that I have sold?
Following your sale your solicitor should send the transfer deeds and all additional paperwork to the purchaser's lawyers. If applicable, your lawyer should also confirm that the home loan has been redeemed to the buyers lawyers. There is unlikely to be post completion requirements peculiar conveyancing in Tisbury.
Is it correct that all Tisbury CQS (Conveyancing Quality Scheme) solicitors are on the Barclays conveyancing list of approved solicitors?
It is true that some banks and building societies now make use of the accreditation scheme as the kick off point for Panel membership such as HSBC and Santander. The Law Society’s CQS membership however gives no guarantee to lender panel acceptance. That being said,the Council of Mortgage Lenders have indicated that it is likely to become a pre-requisite for solicitors wishing to remain on their approved list of conveyancing solicitors.
We have a mortgage agreed in principle with Virgin Money. Tisbury conveyancing lawyers are appointed. What is the average time that one could expect to receive a mortgage offer from Virgin Money?
Some lenders take longer than others. Have Virgin Money done the survey? Have you advised Virgin Money as to your lawyers' details and checked that your lawyers are on the Virgin Money conveyancing panel? It is not unusual for a mortgage offer to take a month to come through.
I currently have a mortgage with Co-operative for my property in Tisbury. Conveyancing was finalised some time 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 BTL mortgage or inform Co-operative?
You must advise Co-operative in advance of renting your property as this is likely to be a breach of Co-operative’s mortgage conditions. It may be that Co-operative 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 Co-operative directly. It should not be necessary to do this via a Co-operative conveyancing panel lawyer.
I am purchasing a new build house in Tisbury benefiting from help to buy. The builders refused to budge the price so I negotiated £7000 of extras instead. The estate agent told me not disclose to my solicitor about the extras as it will affect my mortgage with the bank. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
Do you have any top tips for leasehold conveyancing in Tisbury from the point of view of expediting the sale process?
- A significant proportion of the delay in leasehold conveyancing in Tisbury can be reduced if you get in touch lawyers the minute your agents start marketing the property and request that they start to collate the leasehold documentation which will be required by the purchasers’ solicitors. In the event that you altered the property did you need the Landlord’s consent? In particular have you installed wooden flooring? Most leases in Tisbury state that internal structural alterations or installing wooden flooring necessitate a licence issued by the Landlord approving such changes. If you dont have the approvals in place you should not contact the landlord without contacting your conveyancer in advance. You believe that you know the number of years left on your lease but it would be wise to verify this by asking your solicitors. A buyer’s lawyer will not be happy to advise their client to where the lease term is under 75 years. In the circumstances it is essential at an as soon as possible that you identify whether the lease requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale. The majority of freeholders or Management Companies in Tisbury levy fees for providing management packs for a leasehold premises. You or your lawyers should find out the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most common reason for delay in leasehold conveyancing in Tisbury. If you have had conflict with your landlord or managing agents it is essential that these are settled before the property is marketed. The buyers and their solicitors will be nervous about purchasing a flat where a dispute is ongoing. You may have to bite the bullet and pay any arrears of service charge or settle the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled prior to the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is clearly preferable to reveal the dispute as over as opposed to ongoing.
I purchased a 2 bed flat in Tisbury, conveyancing was carried out in 1996. Can you give me give me an indication of the likely cost of a lease extension? Corresponding properties in Tisbury with a long lease are worth £216,000. The average or mid-range amount of ground rent is £50 per annum. The lease runs out on 21st October 2094
With only 69 years remaining on your lease we estimate the premium for your lease extension to span between £9,500 and £11,000 as well as plus your own and the landlord's "reasonable" professional fees.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure without more detailed due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt additional concerns that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward based on this information before getting professional advice.
Developers have suggested I use a solicitor and I've obtained an estimate from them. They are almost two hundred pounds less expensive than my own Tisbury conveyancing practitioner. What's the catch?
Developers often have panels of conveyancing practitioners who are quick and who know the builder's documentation and property lawyer. Plenty of developers offer an inducement to use a preferred conveyancing practitioner for this reason, any increased cost can be avoided and a developer will not recommend a conveyancing warehouse and run the risk of having the transaction stall when they need an exchange within a tight time frame. The argument for not opting for the recommended solicitor is that they may be unwilling to fight for your interests for fear of alienating the housebuilder. Where you have concerns that this may be the situation you should remain with your high street Tisbury lawyer.