We are buying a new build duplex in Tring and my lawyer is telling me that she has to the mortgage company to reveal incentives from the developer. I am nearing the developer’s deadline to exchange and I would rather not prolong deal. Is my lawyer right?
You should not exchange unless you have been advised to do so by your solicitor. A precondition to being on a lender panel is to comply with the UK Finance Lenders’ Handbook provisions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
What does my ID and proof of funds have anything to do with my conveyancing in Tring? Why is this being asked of me?
In order to comply with Money Laundering Regulations any Tring conveyancing firm will require proof of identity in all conveyancing transactions. This is normally satisfied by provision of a passport and an original bank statement or utility account evidencing your correct address.
In accordance with Money Laundering Regulations, conveyancing solicitors are obliged by law to check not just the ID of conveyancing clients but also the origin of monies that they receive in respect of any matter. Refusal to disclose this may lead to your solicitor ending their retainer with you, as clearly this will cause a conflict between the set Regulations and a refusal to disclose.
Your property lawyers will have an obligation to inform the relevant authorities should they consider that any amounts received by them may contravene the Money Laundering Regulations.
I am planning to move property in August. Does my conveyancing solicitor communicate with the removal company on the day of completion. As an aside, can you put forward a removal company in Tring. Conveyancing lawyer was chosen before I stumbled across your website.
On the day of completion you will need to collect the house keys from the selling agent but this should only occur when the sellers conveyancers inform the agent that they acknowledge receipt of the completion payment and the keys can be collected. Subsequently you will need to tell the removal company that you are ready to move in. As a matter of policy we do not recommend a particular removal organisation but can help you choose a conveyancing in Tring or a lawyer that specialises in conveyancing in Tring.
It is not clear whether my mortgage offer requires a lease extension. I have telephoned my Tring bank branch on a couple of occasions and was reassured it wasn't an issue and they will lend. My Tring conveyancing solicitor - who is on the bank conveyancing panel- telephoned to say that they refuse to lend in accordance with their specific requirements. Who do I believe?
Provided that the conveyancer is on the lender approved list, she or he must follow the Council of Mortgage Lenders’ Handbook specifications for the bank. Unless your lawyer obtains specific confirmation in writing that the bank 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 mortgage company to contact your lawyer in writing confirming that they will accept the number of years left on the lease.
I've read lots of mortgage guides, I note that they all recommend that you should get your house surveyed prior to buying it. When I asked my local Tring solicitor - who is on the HSBC conveyancing panel - on this she said they don't do this and I need to contract an independent surveyor. Is that normal?
HSBC will need an independent valuation of the property. Your lawyer will not arrange this. Usually HSBC will appoint their own surveyor to do this, and you will have to pay for it. Remember that this is a valuation for mortgage purposes and not a survey. Your property lawyer will not organise the survey but they may be able to put you in touch with a local one that they recommend. RICS offers a find a surveyor service (just google it) where you can search for a qualified surveyor by your Tring postcode. As you are getting a mortgage with HSBC, you could contact them to see if they have a list of approved surveyors in Tring.
Should my solicitor be raising questions concerning flooding during the conveyancing in Tring.
The risk of flooding is if increasing concern for solicitors conducting conveyancing in Tring. Some people will buy a property in Tring, completely aware that at some time, it may be flooded. However, leaving to one side the physical damage, where a property is at risk of flooding, it may be difficult to get a mortgage, satisfactory building insurance, or dispose of the property. Steps can be carried out during the course of a house purchase to forewarn the buyer.
Solicitors are not qualified to give advice on flood risk, however there are a numerous checks that may be carried out by the purchaser or on a buyer’s behalf which will give them a better understanding of the risks in Tring. The standard information sent to a buyer’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) incorporates a standard inquiry of the vendor to discover if the premises has historically flooded. In the event that the premises has been flooded in past which is not disclosed by the owner, then a buyer may commence a claim for damages as a result of such an misleading answer. The purchaser’s solicitors will also order an environmental report. This will higlight whether there is a recorded flood risk. If so, additional investigations will need to be carried out.
I am purchasing a new build house in Tring with a mortgage from Accord Mortgages Ltd. The developers would not budge the price so I negotiated 6k of additionals instead. The sale representative suggested that I not to tell my lawyer about the side-deal as it would put at risk my loan with Accord Mortgages Ltd. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the builder 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.