I am nearing exchange of contracts for my home in Washington and the EA has just e-mailed to say that the purchasers are switching solicitor. I am told that this is due to the fact that the bank will only engage with solicitors on their conveyancing panel. Why would a major lender only work with certain lawyers rather the firm that they want to choose for their conveyancing in Washington ?
Banks have always had an approved set of law firms that can act for them, but in the past few years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 15 years.
Lending institutions attribute this action to a rise in fraud as the reason for the pruning – criteria have been tightened 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 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 purchasers are unlikely to have any impact on this.
All was ready to complete my purchase in Washington next Friday. I have now been asked to send a copy of my building insurance schedule by my solicitor as he says that he has to check this in his capacity as lawyer 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 Part 2 requirements. These obligations are not specific to conveyancing in Washington.
I'm the only recipient of my late mum's will and I have everything in my name alone, including the house in Washington. Conveyancing formalities meant that the Land Registry date was in October. I plan to dispose of the property. I understand that there is a CML 6 month 'rule', which means that my property ownership may be regarded the same way as though I had purchased the property in October. Is the property unsalable for six months?
The CML handbook mandates conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." Technically you could be affected by that. How practical a view mortgage companies take of it, depend on the bank as this obligation principally exists to capture subsales or the quick reselling of properties.
I am expecting a AIP from Coventry BS this week so we know how much we could potentially offer as otherwise we are dependent on web based calculators (which aren't taking into account credit checks etc). Do Coventry BS recommend any Washington solicitors on the Coventry BS conveyancing panel, or is it better to go independently?
You will need to appoint Washington solicitors independently although you'll need to choose one on the Coventry BS conveyancing panel. The solicitor represents both you and Coventry BS through the process.
Completion of my remortgage has taken place for my property in Washington. Conveyancing was of an acceptable standard but I would like to complain about the lender. How does one go about formally complaining?
All lenders have complaints procedures. Your first point of contact should be one of the lender’s branches or the Customer Services Team at head office. In most cases complaints to a lender are resolved effectively and efficiently. However if you are not satisfied that the matter is not resolved you can write to Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR who will take matters further.
I was advised by a few selling agents in Washington to select a solicitor on your site. What’s the financial upside for Estate Agents to recommend your lawyers rather than a competitor’s?
We refuse to offer any referral fee for directing people to this site. We thought it would be too underhand a fee because a client could think, ‘Why is the agent getting a kickback? Why am I not receiving any benefit too?’ We would prefer to grow our business on genuine recommendations.
Am I better off to choose a Washington conveyancing solicitor who is local to the property I am purchasing? I have an old university friend who can conduct the legal formalities but they are based 400kilometers away.
The primary upside of using a high street Washington conveyancing practice is that you can attend the office to execute documents, deliver your identification documents and pester them where appropriate. Having local Washington know how is a plus. That being said nothing is more important than finding someone that will do a good and efficient job. If if people you trust used your friend and on the whole were impressed that must surpass using an unknown Washington conveyancing solicitor just because they are round the corner.
How and when do I cover the costs of stamp duty payable for my Washington house purchase?
The majority of conveyancers tend to fill out a stamp duty return for you as part of your Washington purchase transaction for signature. After completion your conveyancer will submit the STL Return Form to the Tax Authorities and - assuming they have the money - discharge any tax bill payable on your behalf.