My partner and I are hoping to purchase a home in Bodmin and are in fact using a Bodmin conveyancing firm. Within the last couple of days our solicitor has forwarded the sale agreement to be signed with a detailed report with the expectation that exchange is imminent. TSB have this morning contacted us to inform me that they have now hit a problem as our Bodmin solicitor is not on their conveyancing panel. What do we do from here?
Where you are buying a property needing a mortgage it is normal for the purchasers' lawyers to also represent the purchaser's lender. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Quality Scheme. Your property lawyer should contact your mortgage company and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You are not legally obliged to appoint a law firm on the bank's conveyancing panel as you are at liberty to use your preferred Bodmin lawyers, in which case it will likely add costs, and it may delay matters as you are adding another lawyer into the mix.
Our lawyer has identified a a legal deficiency with the lease for the flat we are buying in Bodmin. The other side have suggested title insurance as a solution. We are happy with insurance and will cover the costs. Our conveyancer has advised that he must ensure that the lender is happy with this solution. Are we the client or is the bank?
Regardless of the fact that you have a mortgage offer from the bank does not mean to say that the property will meet their provisions for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook provisions. You and the lender are the client. The appropriate lender requirements have to be complied with.
Do I need to pop into the offices of the solicitor to execute the mortgage deed? If so, I will instruct a firm who offer conveyancing in Bodmin so that I can attend their offices when needed.
Whereas this was necessary ten years ago, most mortgage companies no longer oblige their conveyancing panel solicitor to witness the borrowers signature. It will still be necessary for you to provide identification documents and there are still distinct benefits to using a local solicitor, in your case a conveyancing solicitor in Bodmin.
How does conveyancing in Bodmin differ for newly converted properties?
Most buyers of new build property in Bodmin approach us having been asked by the housebuilder to sign contracts and commit to the purchase even before the premises is completed. This is because house builders in Bodmin usually acquire the site, 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 conveyancers 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 Bodmin or who has acted in the same development.
Over the last few months I have been searching for a leasehold apartment up to £235,500 and found one near me in Bodmin I like with open areas and railway links in the vicinity, the downside is that it only has 52 years on the lease. There is not much else in Bodmin for this price, so just wondered if I would be making a grave error purchasing a lease with such few years left?
Should you require a mortgage that many years may be problematic. Reduce the offer by the anticipated lease extension will cost if not already taken into account. If the current owner has owned the property for a minimum of twenty four months you could ask them to start the process of the extension and then assign it to you. You can add 90 years to the current lease and have £0 ground rent by law. You should speak to your conveyancing lawyer about this matter.