I am nearing exchange of contracts for my flat in Northumberland and the estate agent has just e-mailed to say that the purchasers are switching solicitor. I am told that this is due to the fact that the bank will only engage with solicitors on their conveyancing panel. Why would a major mortgage company only work with certain lawyers rather the firm that they want to appoint to handle their conveyancing in Northumberland ?
Banks have always had an approved set of law firms they are willing to work with, but in recent years big names such as Santander, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 15 years.
Lending institutions point to the increase in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to maintain. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices 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. Your buyers are unlikely to have any impact on this.
Will my conveyancing lawyers need to check that the building insurance when buying a house in Northumberland. My lender is Bank of Ireland
Bank of Ireland have specific requirements as set out in the UK Finance Lenders’ Handbook. As of 8/1/2021, the requirements read as follows :
How does conveyancing in Northumberland differ for newly converted properties?
Most buyers of new build residence in Northumberland contact us having been asked by the developer to sign contracts and commit to the purchase even before the property is finished. This is because developers in Northumberland 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 Northumberland or who has acted in the same development.
Due to the input of my in-laws I had a survey completed on a house in Northumberland in advance of instructing solicitors. I have been informed that there is a flying freehold element to the house. The surveyor advised that some lenders tend not grant a mortgage on such a property.
It depends who your proposed lender is. Santander has different requirements from Nationwide. Should you wish to telephone us we can investigate further via the appropriate bank. If you lender is happy to lend one our lawyers can help as they are accustomed to dealing with flying freeholds in Northumberland. Conveyancing will be smoother if you use a solicitor in Northumberland especially if they regularly deal with such properties in Northumberland.
I am looking at a two maisonettes in Northumberland both have in the region of 50 years unexpired on the lease term. Will this present a problem?
There are plenty of short leases in Northumberland. The lease is a right to use the premises for a period of time. As the lease shortens the value of the lease decreases and it becomes more expensive to acquire a lease extension. This is why it is advisable to increase the term of the lease. More often than not it is difficulties arise selling premises with a short lease because mortgage lenders may be reluctant to lend money on properties of this type. Lease enfranchisement can be a protracted process. We advise that you seek professional assistance from a conveyancer and surveyor with experience in this arena.
Northumberland Conveyancing for Leasehold Flats - A selection of Questions you should consider before buying
What is the name of the managing agents? Make sure you investigate if there are any onerous prohibitions in the lease. For instance it is fairly common in Northumberland leases that pets are not permitted in certain buildings in Northumberland. If you like the propertyin Northumberland but your cat is not allowed to move with you then you will be faced difficult decision.