I am progressing with the sale of my ground floor flat in City Of London and the EA has just e-mailed to advise that the buyers are swapping law firm. I am told that this is due to the fact that the lender will only engage with property lawyers on their approved list. On what basis would a leading lender only deal with certain lawyers rather the firm that they want to choose to handle their conveyancing in City Of London ?
UK lenders have always had an approved set of law firms they are willing to work with, but in recent years big names such as Nationwide, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Mortgage companies point to the increase in fraud by way of justification for the pruning – criteria have been tightened as a smaller panel is easier to maintain. Banks tend not to reveal 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. Your buyers are unlikely to have any sway in the decision.
We are buying a purpose built flat in City Of London with a loan from Leeds Building Society.We like our City Of London conveyancing solicitor but Leeds Building Society advised that his firm is not on their "panel". We have to appoint a Leeds Building Society panel lawyer or keep our local solicitor and fork out for one of their panel ones to represent them. We feel as though this is unjust; Can we not simply insist that Leeds Building Society use our lawyer?
No, not really. The home loan issued to you is subject to its various provisions, a common one being that conveyancers must be on the Leeds Building Society conveyancing panel. in the past, most mortgage companies had large numbers of solicitors on their panels: a borrower could find one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. A further alternative is for your lawyer to apply to be on the conveyancing panel for Leeds Building Society
I opted to have a survey completed on a house in City Of London before retaining solicitors. I have been informed that there is a flying freehold overhang to the house. Our surveyor advised that some mortgage companies will refuse to issue a mortgage on this type of property.
It depends who your proposed lender is. Bank of Scotland has different requirements for example to Halifax. If you contact us we can check via the relevant bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in City Of London. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in City Of London to see if the conveyancing costs will increase in light of this.
I need to retain a conveyancing solicitor for my conveyancing in City Of London. I happened to land on a site which seems to have the perfect offering If there is a chance to get all this stuff done via phone that would be preferable. Do I need to be concerned? What should out be looking out for?
As usual with these online conveyancers you need to read ALL the small print - did you notice the extra charge for dealing with the mortgage?
In relation to leasehold conveyancing in City Of London what are the most frequent lease defects?
There is nothing unique about leasehold conveyancing in City Of London. All leases are individual and legal mistakes in the legal wording can sometimes mean that certain sections are wrong. For example, if your lease is missing any of the following, it could be defective:
A provision to repair to or maintain elements of the property A provision for the recovery of money spent for the benefit of another party.
You may encounter a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Birmingham Midshires, Barnsley Building Society, and Aldermore all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to grant the mortgage, forcing the purchaser to withdraw.
I bought a basement flat in City Of London, conveyancing formalities finalised 7 years ago. Can you let me have an estimated range of the fair premium for a lease extension? Similar properties in City Of London with over 90 years remaining are worth £185,000. The average or mid-range amount of ground rent is £65 levied per year. The lease ceases on 21st October 2079
With 60 years left to run the likely cost is going to range between £20,000 and £23,000 plus plus your own and the landlord's "reasonable" professional fees.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed investigations. Do not use the figures in a Notice of Claim or as an informal offer. There are no doubt additional issues that need to be considered and clearly you want to be as accurate as possible in your negotiations. Please do not take any other action based on this information without first getting professional advice.