I am one month into the sale of my maisonette in Greenwich and the estate agent has just text me to warn that the purchasers are appointing a new law firm. The excuse is that the mortgage company will only engage with property lawyers on their approved list. Why would a leading lender only engage with specific solicitors rather the firm that they want to select to handle their conveyancing in Greenwich ?
Mortgage companies have always had an approved set of law firms that can represent them, but in recent years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 15 years.
Mortgage companies point to the increase in fraud by way of justification for the reduction – criteria have been tightened as a smaller panel is easier to keep an eye on. Banks tend not to disclose 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 not going to have any impact on this.
At what point will exchange of contracts occur in domestic conveyancing in Greenwich and am I required to be at the solicitors office?
If you are near to one of the conveyancing solicitors in Greenwich you are welcome to come in to sign the paperwork. However, the firms we recommend offer countrywide coverage for conveyancing and give just as diligent and professional a job for you when dealing with you electronically. The executing of the contract is not the important part. Signing on the dotted line is just a prerequisite for the solicitor to exchange contracts when the time is right, which is ordinarily shortly after signing. The exchange process is is usually a five minute process, although where a lengthy "chain" is involved, since the process requires the relevant party's solicitor (not necessarily a conveyancing solicitor in Greenwich)to be in the office at the appropriate time.
Please explain the implications if my solicitor is expelled from the TSB Solicitor panel ahead of completing my conveyancing in Greenwich?
The first thing to point out is that, this is very unlikely to happen. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
Forgive me if this question is silly but I am unexperienced as FTB of a two bedroom flat in Greenwich. Do I collect the keys to the house on the completion date from my solicitor? If so, I will appoint a High Street conveyancing solicitor in Greenwich?
On the day of completion you do not need to attend the conveyancers office in Greenwich. Conveyancing lawyers for you will transfer the purchase money to the vendor’s lawyers, and shortly after the monies have arrived, you will be able to receive the keys from the selling Agents and move into your new home. This tends to happen early afternoon.
Can you help - my lawyer says that chancel insurance is needed on my purchase. What is the level of cover for Greenwich conveyancing?
The appropriate level of chancel indemnity insurance depends on your lender. It would differ for example between Halifax and Virgin Money. Conveyancing practitioners as opposed to members of the public take out such insurances.
Are all Greenwich Conveyancing Quality Solicitors on the Co-operative conveyancing panel?
A selection of lenders now use CQS as the starting point for Panel membership such as HSBC and Santander. CQS membership however gives no guarantee to lender panel acceptance. Nevertheless,the Council of Mortgage Lenders have indicated that it is likely to become a pre-requisite for firms wishing to join their approved list of conveyancing solicitors.
Our conveyancer in Greenwich has uncovered a defect with the lease for the flat we are purchasing in Greenwich. The seller’s lawyers have put forward defective title insurance as a solution. We are happy with insurance and will pay for it. Our lawyer has advised that as he is on the mortgage company conveyancing panel he must ensure that the lender is happy with this solution. Who is the client here, us or the lender?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the bank are the client. A precondition to being on the lender approved panel is to comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects will the lease so that the bank can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected . Should you refuse to allow your lawyer to make the appropriate notification then your lawyer will have no choice but to discontinue acting for you.