My wife and I are planning to acquire a flat in Llanbradach and have appointed a Llanbradach conveyancing firm. Within the last couple of days our lawyer has forwarded the sale agreement to be signed with a detailed report in anticipation of exchanging contracts shortly. Accord Mortgages Ltd have this afternoon contacted us to inform me that there is now an issue as our Llanbradach conveyancer is not on their approved list of lawyers. Is this a problem?
When purchasing a property with mortgage finance it is conventional for the purchasers' lawyers to also act for the mortgage company. 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 bank 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 don't have to instruct a firm on the bank's conveyancing panel and you may continue to use your own Llanbradach solicitors, in which case it will likely add costs, and it may delay matters as you have another set of people involved.
Can you help - my lawyer advises that flying freehold insurance is needed on my purchase. What is the level of cover for Llanbradach conveyancing?
The right level of flying freehold indemnity insurance depends on your lender. It would differ for example between National Westminster Bank and Coventry Building Society. Conveyancing lawyers as opposed to members of the public take out such policies.
The mortgage over my property is with Co-operative for my property in Llanbradach. Conveyancing was finalised some time ago. If I am intending to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Co-operative?
You must advise Co-operative prior to letting out your property as this is likely to be a breach of Co-operative’s mortgage conditions. In many cases banks or building societies will permit you to let out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Co-operative directly. You need not do this via a Co-operative conveyancing panel firm.
Leeds Building Society have agreed my mortgage in principle, my offer on a property in Llanbradach has been agreed to, what happens next?
Your estate agent will need to know who your solicitors are (make sure the conveyancers are on the lender’s approved list). Call up Leeds Building Society or your broker and complete any relevant documentation. Leeds Building Society will appoint a valuer who will get in touch with the selling agent or seller to arrange a slot for the valuation to take place. Once conducted (assuming no problems) it takes about a week to receive the mortgage offer. Leeds Building Society 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 Llanbradach.
Will my solicitor be making enquiries regarding flooding during the conveyancing in Llanbradach.
The risk of flooding is if increasing concern for conveyancers dealing with homes in Llanbradach. There are those who acquire a property in Llanbradach, completely expectant that at some time, it may suffer from flooding. However, aside from the physical destruction, where a property is at risk of flooding, it may be difficult to obtain a mortgage, suitable building insurance, or sell the property. Steps can be carried out as part of the conveyancing process to forewarn the buyer.
Lawyers are not best placed to impart advice on flood risk, however there are a various searches that can be carried out by the purchaser or on a buyer’s behalf which can figure out the risks in Llanbradach. The standard information supplied to a purchaser’s lawyer (where the Conveyancing Protocol is adopted) contains a standard question of the vendor to determine if the property has historically flooded. If flooding has previously occurred which is not revealed by the seller, then a buyer could issue a compensation claim as a result of such an incorrect reply. A buyer’s lawyers will also commission an environmental search. This should higlight whether there is a recorded flood risk. If so, further investigations should be conducted.
I am purchasing my first flat in Llanbradach with a loan from Godiva Mortgages Ltd. The builders would not move on the amount so I negotiated £7000 of fixtures and fittings instead. The property agent advised me not reveal to my conveyancer about the deal as it could adversely affect my loan with the bank. 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.
Due to the encouragement of my in-laws I had a survey completed on a house in Llanbradach prior to retaining lawyers. I have been advised that there is a flying freehold element to the house. My surveyor advised that some mortgage companies will refuse to issue a loan on this type of house.
It depends who your proposed lender is. Santander has different requirements from Nationwide. Should you wish to telephone us we can look into this further with the relevant lender. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Llanbradach. Conveyancing will be smoother if you use a solicitor in Llanbradach especially if they regularly deal with such properties in Llanbradach.