I am in the process of selling my ground floor flat in Tooting and the estate agent has just text me to say that the purchasers are swapping property lawyer. The reason given is that the bank will only work with solicitors on their conveyancing panel. On what basis would a big named lender only engage with certain law firms rather the firm that they want to appoint for their conveyancing in Tooting ?
Banks 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 Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Lenders point to the increase in fraud as the reason for the pruning – criteria have been narrowed as a smaller panel is easier to maintain. No lender will say 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. Your buyers are not going to have any impact on this.
I am the registered owner of a freehold property in Tooting but nevertheless pay rent, why is this and what is this?
It is rare for properties in Tooting and has limited impact for conveyancing in Tooting but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges have existed for hundreds of years, but the Rent Charge Act 1977 barred the generation of new rentcharges from 1977 onwards.
Old rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence post 2037 will be extinguished.
I have an AIP. The lender mentioned the home loan came with free conveyancing. Does this mean I have to instruct their panel conveyancer as I would prefer to instruct a high street conveyancing solicitor in Tooting?
You should check but the the probability is that allocate you one of their panel conveyancers if you take up the "fee-free" offer. Speak to the lender to see if they allow a monetary alternative. It is not unheard for a lender to give a £250 cashback as a further option in which case you could put that amount towards your preferred conveyancing solicitor near Tooting.
Over the last few months I have been searching for a flat up to £305k and identified one round the corner in Tooting I like with amenity areas and station nearby, however it's only got 49 years on the lease. I can't really find anything else in Tooting suitable, so just wondered if I would be making a mistake purchasing a short lease?
If you need a mortgage the shortness of the lease may be problematic. Reduce the price by the anticipated lease extension will cost if it has not already been discounted. If the current owner has owned the property for at least twenty four months you may ask them to start the process of the extension and then assign it to you. You can add 90 years to the existing lease and have £0 ground rent by law. You should speak to your conveyancing lawyer regarding this matter.
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At this site secure a fixed fee quote from a Solicitor or Licensed Conveyancer that has a full understanding of the nuances of your conveyancing in Tooting. Unlike many estate agents and brokerage sites we do not operate commission arrangements with solicitors. A large number of agents and online brokers 'recommend' the firm who pay the highest per referral, not the best value conveyancing in Tooting
My son is just in the process of moving house, the home loan was agreed last week in principle. One the seller agreed the offer on the house we rang the bank to move forward with his. I was very surprised to learn that mortgage lenders do not accept all lawyer, they have to be on a list, is this right?
Mortgage Companies tend to imposes restrictions either the type or the number of conveyancing firms on their approved list of lawyers. Typical examples of such restriction(s) being that a firm must have two or more partners. In addition to restricting the type of firm, some have decided to limit the number of firms they use to represent them. You should note that lenders have no responsibility for the quality of advice provided by any Tooting solicitor on their panel. Mortgage fraud was a key driver in the rationalisation of conveyancing panels a few years ago and whilst there are differing views about the extent of solicitor involvement in some of that fraud. Statistics from the Land Registry reveal that thousands of law firms only carry out one or two conveyances a year. Those supporting conveyancing panel cuts ask why law firms should have the right to be on a Lender panel when clearly, conveyancing is not their speciality. To put it another way; would you want a conveyancing solicitor to represent you if you were charged with a crime? Presumably not.