My husband and I are approaching an exchange on a house in London and my parents have transferred the ten percent deposit to my solicitor. I am now advised that as the deposit has been received from someone other than me my conveyancing practitioner needs to disclose this to my bank. I am advised that, in also acting for the lender he must inform them that the balance of the purchase price is not just from me. I informed the lender concerning my parents' contribution when I applied for the home loan, so is it really necessary for this now to delay the deal?
The solicitor is obliged to clarify with mortgage company to make sure that they understand that the balance of the purchase price is not from your own funds. The solicitor can only disclose this to your lender if you permit them to, failing which, your lawyer must cease to continue acting.
What does my ID and proof of funds have anything to do with my conveyancing in London? Is this really warranted?
London conveyancing solicitors as well as nationwide property practitioners throughout the UK have an obligation under money laundering regulations to check the identity of any client with a view to ensure that clients are who they say they are.
Conveyancing clients will need to disclose two forms of certified ID; proof of identity (usually a Passport or Driving Licence) and proof of address (usually a Bank Statement less than 3 months old).
Proof of the origin of monies is also necessary in accordance with the money laundering regulations as conveyancers are required to investigate that the money you are utilising to acquire a property (whether it be the deposit for exchange or the total purchase monies where you are buying mortgage free) has originated from a reputable source (such as employment savings) as opposed to the fruits of criminal behaviour.
What is the difference between a licensed conveyancer and conveyancing solicitor in London
Two types of professional can perform conveyancing in London namely CLC regulated conveyancers or solicitors. The two can provide the legal services that you need to complete the sale or purchase of property. They are both duty bound to handle London conveyancing on similar quality and guidelines so you may be safe in the knowledge that your conveyancing will be professionally carried out and that the necessary steps will be correctly followed.
When it comes to lenders such as Yorkshire BS, do London property lawyers have to pay a yearly amount to be on the list of approved solicitors?
We are unaware of any bank fees to be on their panel, although some do charge an administration fee to deal with the processing of the conveyancing panel application.
I have today made my last payment due on my mortgage with Clydesdale. I assume I don't need a London lawyer on the Clydesdale panel to remove the mortgage at the Land Registry. Please confirm.
If you have finished paying off your Clydesdale mortgage, they may send you evidence showing that you have paid it off. Alternatively they may notify the Land Registry directly. The Land Registry need to see this evidence before they will remove the Clydesdale mortgage from the register. Clydesdale, and any evidence they send you, will determine the action you need to take. In cases where no conveyancer is acting for you and you have paid off your mortgage:
- but are not moving to another property
- where Clydesdale has sent the Land Registry the discharge electronically, and
- Clydesdale has instructed the Land Registry to do so
How does conveyancing in London differ for newly converted properties?
Most buyers of new build premises in London contact us having been asked by the housebuilder to exchange contracts and commit to the purchase even before the premises is completed. This is because builders in London typically 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 conveyancing solicitors 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 accustomed to new build conveyancing in London or who has acted in the same development.
I decided to have a survey carried out on a house in London ahead of retaining lawyers. I have been informed that there is a flying freehold aspect to the property. My surveyor has said that some lenders may refuse to grant a mortgage on this type of home.
It depends who your proposed lender is. Bank of Scotland has different instructions for example to Nationwide. Should you wish to call us we can check with the appropriate lender. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in London. Conveyancing will be smoother if you use a solicitor in London especially if they are accustomed to such properties in London.