I am nearing exchange of contracts for my home in Kenilworth and the EA has just text me to warn that the buyers are swapping property lawyer. I am told that this is due to the fact that the lender will only work with solicitors on their approved list. On what basis would a big named lender only work with certain solicitors rather the firm that they want to choose to handle their conveyancing in Kenilworth ?
Banks have always had an approved set of law firms that can represent them, but in recent years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for many years.
Mortgage companies justify this action to a rise in fraud as the reason 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 claims that it is being contacted daily by practices that have been removed from panels. Some 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 unlikely to have any impact on this.
I have 7378 less than 75 years left on my lease and require a lease extension for my apartment in Kenilworth. Conveyancing solicitors on the Tesco Bank panel can deal with such extensions correct?
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are obtaining a mortgage then your lender may insist that the lease be extended before competition. Tesco Bank have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 16/2/2019 the requirements read as follows :
For new build properties, the following lease terms are not acceptable:
- The unexpired lease term on a new build flat is less than 125 years
- The unexpired lease term on a new build house is less than 250 years
If the lease cannot be amended to comply with the above, the case cannot proceed. Please advise us immediately where the case cannot proceed.
Contact point as detailed in 1.11b.
My offer was accepted on an apartment in Kenilworth on 28/12/2018, valuation was booked 2 days later, all came back fine. Property lawyer retained, so all that was missing was my mortgage offer. Having made daily calls to Co-operative and chasing them on my offer, I have now been told that my offer will not be issued unless the lawyer is on the Co-operative conveyancing panel. Can the lender hold off the offer?
A lender would not issue an offer until they have details of a lawyer on their panel. It can take a few weeks for Co-operative to deal with your lawyer's application to be on the Co-operative conveyancing panel. There's no guarantee that your solicitor will be accepted.
I've digested plenty 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 Kenilworth 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 solicitor 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 Kenilworth postcode. As you are getting a mortgage with HSBC, you could contact them to see if they have a list of approved surveyors in Kenilworth.
Lloyds have agreed my home loan in principle, my offer on a flat in Kenilworth has been agreed to, what happens next?
The property agent will want to be informed of your solicitor's details (be sure the property lawyers are on the bank’s panel). Contact Lloyds or the broker and complete any relevant paperwork. Lloyds will sellect a valuer who will get in touch with the selling agent or vendor to book an appointment. Once carried out (assuming no problems) it takes approximately a week for the mortgage offer to be issued. Lloyds will send the offer to you and your lawyers. The transaction will then take it’s course according the nature and complexity of the conveyancing in Kenilworth.
Will commercial conveyancing searches reveal impending roadworks that may impact a commercial site in Kenilworth?
Its becoming the norm that commercial conveyancing solicitors in Kenilworth will order a SiteSolutions Highways report as it reduces the time that conveyancers expend in researching accurate data on highways that impact buildings and development assets in Kenilworth. The search result provides definitive information on the adoption status of roads, footpaths and verges, as well as the implication of traffic schemes and the rights of way surrounding a commercial development sites in Kenilworth.
For each commercial conveyancing transaction in Kenilworth it is critical to investigate the adoption status of roads surrounding a site. The absence of identifying developments where adoption procedures have not been dealt with adequately may cause delays to Kenilworth commercial conveyancing deals as well as present a risk to future intentions for the site. These searches are not carried out for residential conveyancing in Kenilworth.
I'm purchasing my first flat in Kenilworth with the aid of help to buy. The sellers refused to budge the amount so I negotiated £7000 of additionals instead. The property agent advised me not inform my conveyancer about the extras as it could impact my mortgage with the lender. Is this normal?.
All lenders require a Disclosure of Incentives Form from the developer 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.