I am progressing with the sale of my ground floor flat in Penrhyn Bay and the EA has just text me to say that the purchasers are switching law firm. I am told that this is due to the fact that the lender will only work with property lawyers on their conveyancing panel. Why would a big named mortgage company only deal with certain solicitors rather the firm that they want to choose to handle their conveyancing in Penrhyn Bay ?
Mortgage companies have always had panels of law firms that can act for them, but in recent years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for many years.
Lenders point to the increase in fraud as the reason for the cull – criteria have been tightened as a smaller panel is easier to oversee. 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. Plenty of firms are unaware that 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.
Can you help? My Penrhyn Bay lawyer is informing me me that he is legally obliged toorder Penrhyn Bay conveyancing searches becausethe firm are on the HSBCsolicitor panel. Do I not have any options here?
You have limited options available to you. Given that you are taking out a loan with a mortgage company your conveyancer 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 follow the Council of Mortgage Lenders’ Handbook conditions . Even if you were a cash buyer you would be ill advised not to carry out Penrhyn Bay conveyancing searches.
I am about to put an offer on a leasehold apartment in Penrhyn Bay. The property agents assure me that it is the norm for flats in Penrhyn Bay to have less than 75 years left on the lease. I am expecting a loan with Virgin. Will the property be mortgageable given that the lease has 70 years remaining.
Most leasehold conveyancing experts should be able to deal with a lease extension. if you are getting a mortgage then your lender may insist that the lease be extended before competition. Virgin have specific requirements as set out in the UK Finance Lenders’ Handbook in relation to minimum unexpired lease terms. As of 15/9/2020 the requirements read as follows :
My husband and I are in the throws of looking at flats in Penrhyn Bay and I am about to put in an offer. Is it too early to have a solicitor in place? I intend to finance via a mortgage with Lloyds.
It would be wise to commence your search sooner rather than later. After you have chosen your lawyer and once your offer is accepted you can instruct them to work for you and pass their details on to the selling agent. As you are obtaining a mortgage with Lloyds, ask your prospective lawyers if they are on the Lloyds conveyancing panel otherwise they can't do the mortgage legal work.
It is not clear whether my lender requires a lease extension. I have telephoned my Penrhyn Bay bank branch on numerous occasions and was advised it wasn't a problem and they will lend. My Penrhyn Bay conveyancing solicitor - who is on the bank conveyancing panel- called and was told they will not lend in accordance with their specific requirements. Who do I believe?
Your property lawyer must follow the Council of Mortgage Lenders’ Handbook Part 2 requirements for your lender. Unless your lawyer obtains specific confirmation in writing that the mortgage company will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the bank to contact your lawyer in writing confirming that they will accept the number of years remaining.
After shopping around on the internet I have found a Penrhyn Bay conveyancer having checked that they are on the Aldermore conveyancing panel. Does my lawyer arrange the survey of the property?
Aldermore will need an independent valuation of the property. Your lawyer will not arrange this. Usually Aldermore 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 lawyer 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 Penrhyn Bay postcode. As you are getting a mortgage with Aldermore, you could contact them to see if they have a list of approved surveyors in Penrhyn Bay.
A relative advised me that where I am purchasing in Penrhyn Bay I should carry out a Neighbourhood, Planning and Local Amenity Search. Can you explain what the purpose of this search is?
A search of this type is sometimes quoted for as part of the standard Penrhyn Bay conveyancing searches. It is a large report of about 40 pages, listing and detailing important information about Penrhyn Bay around the property and the people living there. It incorporates an Aerial Photograph, Planning Applications, Land Use, Mobile Phone Masts, Rights of Way, the local Housing Market, Council Tax Banding, the demographics of People living in the area, the dominant type of Housing, the Average House Prices, Crime details, Local Education with plans and statistics, Local Amenities and other useful data regarding Penrhyn Bay.