I am selling my home in March and the estate agent has just telephoned to say that the buyers are swapping property lawyer. I am told that this is due to the fact that the mortgage company will only deal with property lawyers on their approved list. Why would a leading lender only deal with certain solicitors rather the firm that they want to appoint for their conveyancing in March ?
Mortgage companies have always had an approved set of law firms that can represent them, 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 acted for them for more than 25 years.
Mortgage companies 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. 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 purchasers are unlikely to have any impact on this.
A relative informed me that in purchasing a property in March there could be a number of restrictions limiting what one can do in terms of external alterations to the property. Is this right?
There are a number of properties in March which have some sort of restriction or requirement of consent to carry out external alterations. Part of the conveyancing in March should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
I have today made my last payment due on my mortgage with Virgin Money. I assume I don't need a March property lawyer on the Virgin Money panel to discharge the mortgage at the Land Registry. Please confirm.
If you have finished paying off your Virgin Money mortgage, they may send you evidence showing that you have paid it off. Alternatively they may notify the Land Registry directly. The Land Registry need to see this evidence before they will remove the Virgin Money mortgage from the register. Virgin Money, and any evidence they send you, will determine the action you need to take. In cases where no conveyancer is acting for you and you have paid off your mortgage:
- but are not moving to another property
- where Virgin Money has sent the Land Registry the discharge electronically, and
- Virgin Money has instructed the Land Registry to do so
It is not clear whether my mortgage offer obliges me to make sure the lease term for the flat is extended prior to the completion date. I have telephoned my March bank branch on a couple of occasions and was told they are content with the situation and they will lend. My March conveyancing solicitor - who is on the lender conveyancing panel- called to say that they will not lend in accordance with their specific requirements. I simply don't know who is right.
Provided that the conveyancer is on the bank approved list, they must adhere to the CML Handbook requirements for the bank. Unless your lawyer obtains specific confirmation in writing that the lender will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the lender to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
How does conveyancing in March differ for newly converted properties?
Most buyers of new build property in March come to us having been asked by the seller to sign contracts and commit to the purchase even before the property is constructed. This is because builders in March tend to buy the real estate, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct conveyancing solicitors as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in March or who has acted in the same development.
My husband and I are first time buyers - agreed a price, but the selling agent advised that the seller will only move forward if we appoint their recommended conveyancers as they need a ‘quick sale’. We would rather use a local solicitor who is familiar with conveyancing in March
It is improbable the sellers are driving this. Should the owner want ‘a quick sale', taking such a hostile approach to a genuine purchaser is going to damage their objectives. Speak to the owners direct and make the point that (a)you are serious purchasers (b)you are ready to go, with mortgage lined up © you have nothing to sell (d) you intend to proceed fast (e)but you will continue to use your own,trusted March conveyancing firm - not the ones that will earn the estate agent a commission or hit his conveyancing thresholds pre-set by HQ.
How easy is it to change a solicitor as I need to find a March based firm who is on the lender conveyancing panel. How simple is it to change conveyancer?
In the event that you have not formally instructed a conveyancer to start work and have just received quotes, you're perfectly free to choose a different solicitor to carry out your work for you. The best way is to get recommendations from friends or family who have actually used the solicitor or conveyancer in March that you're considering.