I am selling my maisonette in Lydiate and the EA has just called to say that the buyers are changing their law firm. The reason given is that the mortgage company will only engage with solicitors on their conveyancing panel. On what basis would a leading lender only deal with certain solicitors rather the firm that they want to appoint for their conveyancing in Lydiate ?

Banks have always had an approved set of law firms that can act for them, but in the last few years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for over 25 years.

Banks blame a rise in fraud by way of justification for the reduction – criteria have been narrowed as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Plenty of firms 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 purchasers are not going to have any sway in the decision.

I sincerely hope you can help me. My Lydiate solicitor is advising me that she is duty bound toapply for Lydiate conveyancing searches resulting from the fact thatthe firm are on the Virgin Moneysolicitor panel. These Lydiate checks cost a lot of money can this be avoided?

Unfortunately both you and your lawyer have little choice here. As you are taking a mortgage with a lender your solicitor has to comply with their conditions as set out in their version of the CML Conveyancing Handbook. Your property lawyer would have previously signed the Terms and Conditions of your lender’s conveyancing panel appointment which obliges them to comply with the Council of Mortgage Lenders’ Handbook provisions . Even if you were a cash buyer you would be ill advised not to carry out Lydiate conveyancing searches.

I am the registered owner of a freehold premises in Lydiate but nevertheless pay rent, why is this and what is this?

It is rare for properties in Lydiate and has limited impact for conveyancing in Lydiate but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.

Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back many centuries, but the Rent Charge Act 1977 barred the generation of fresh rentcharges from 1977 onwards.

Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence after 2037 is to be extinguished.

Please explain the implications if my lawyer’s firm is removed from the RBS Solicitor panel ahead of completing my conveyancing in Lydiate?

The first thing to point out is that, this is a very rare occurrence. 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.

How does conveyancing in Lydiate differ for newly converted properties?

Most buyers of new build residence in Lydiate contact us having been asked by the builder to sign contracts and commit to the purchase even before the residence is built. This is because new home sellers in Lydiate tend to purchase the land, 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 Lydiate or who has acted in the same development.