I am one month into the sale of my apartment in Burnage and the EA has just e-mailed to say that the purchasers are appointing a new law firm. I am told that this is due to the fact that the bank will only deal with property lawyers on their approved list. On what basis would a big named mortgage company only deal with specific lawyers rather the firm that they want to choose for their conveyancing in Burnage ?
Lenders have always had panels of law firms they are content to work with, but in the last few years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 15 years.
Mortgage companies blame a rise in fraud by way of justification for the reduction – criteria have been tightened as a smaller panel is easier to monitor. 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. The buyers are not going to have any sway in the decision.
We wanted to use a property lawyer in Burnage for our house purchase. Our financial adviser informed us that our bank HSBC Bank won't deal with them. Why is this not regarded as unduly restrictive?
A decade ago most mortgage companies had a different appetite for risk. Almost all Burnage conveyancing firms would have been on most bank panels. The Financial Services Authority in 2010 carried out a thematic review into mortgage fraud which come to the conclusion: know the conveyancing solicitors dealt with. Consequently, lenders have regularly sought more data from law firms regarding their operations and the individuals who work for them and set certain criteria such a completing on a minimum number of transactions. Many Burnage conveyancing firms that have been excluded from lender panels have Unblemished track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Burnage is amongst the many locations where the solicitors we list are on the panel for HSBC Bank.
When it comes to mortgage companies such as Coventry BS, do Burnage solicitors face a fee to be on the conveyancing panel?
We are not aware of any bank fees to be on their list of approved firms, although some do charge an administration charge to deal with the processing of the conveyancing panel application.
is it true that all Burnage solicitor practices on the Virgin Money conveyancing panel are overseen by the Solicitors Regulatory Authority?
As a firm of solicitors, in order to be on the Virgin Money conveyancing panel they would need to be overseen by the SRA. Many mortgage companies do permit licenced conveyancers on their panel in which case such organisation would be regulated by the CLC.
I have decided to exercise my right to buy my property in Burnage off the council. I have a mortgage agreed with TSB. Conveyancing is new to me. Can I proceed without a solicitor easily? I think we can but we keep being told I should use one. Any advice?
It is not advisable to proceed with a house purchase without a solicitor. The council's solicitor are not acting for you. You need a solicitor for a number reasons. One of which is to verify what plans the Council have for repairs and refurbishment for the next five years. Many leaseholders have been stung for contributions of thousands of pounds. In any event, if you are getting a mortgage with TSB, you will need to appoint a solicitor on the TSB conveyancing panel.
How does conveyancing in Burnage differ for new build properties?
Most buyers of new build residence in Burnage contact us having been asked by the builder to exchange contracts and commit to the purchase even before the property is built. This is because builders in Burnage usually buy 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 Burnage or who has acted in the same development.
I am buying a garden maisonette in Burnage. Conveyancing solicitor has been awaiting, from the vendor, building insurance schedule. This afternoon I was informed that the vendor needs to send the insurance documents for the flat above in addition. Why does my conveyancing practitioner need to check the insurance for the flat above? Is it really necessary? We have been waiting for the last 3 weeks…
It is not impossible in leasehold conveyancing in Burnage to find Conveyancing in Burnage in a minority of cases reveals that the lease requires the tenant's to insure their individual flats as opposed to the freeholder insuring the complete premises - which is clearly preferable. Do clarify with your property lawyer but it would seem that your conveyancer is attempting to establish that the whole building is insured. Insuring a ground floor residence is no help when it comes to rebuilding after a fire if the 1st floor cannot be reinstated as a result of lack of insurance.