I am nearing exchange of contracts for my home in Ruthin and the EA has just called to advise that the buyers are appointing a new conveyancer. The reason given is that the mortgage company will only work with solicitors on their approved list. On what basis would a big named mortgage company only engage with specific solicitors rather the firm that they want to select for their conveyancing in Ruthin ?
UK lenders have always had an approved set of law firms they are content to work with, but in the past few 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 decades.
Mortgage companies point to the increase in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to monitor. 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 hearing daily from firms 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 sway in the decision.
The owners of the property we are looking to purchase are using a conveyancing firm in Ruthin who has suggested a lock out agreement with a deposit of 5k. Are such agreements sensible?
This form of preliminary agreement isn't frequently used in Ruthin, conveyancers will often try and steer clients away from them as they detract from the primary focus, namely conveyancing and if you end up losing your deposit then the lawyer is left exposed. Secondly, there is no certainty that just because the owner has signed a lock out agreement they will complete the sale with you. They may breach the contract if they receive a large enough offer to do so because an aggrieved claimant with the benefit of a lockoutcontract will still be duty bound to establish consequential losses from the breach and these may not equalise the financial upside that your seller may secure by breaching the contract, no matter how morally reprehensible it undoubtedly is.
Are there restrictive covenants that are commonly identified during conveyancing in Ruthin?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the legal transfer of property in Ruthin. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
Yesterday I discovered that there is a flying freehold issue on a house I put an offer in two weeks back in what was supposed to be a quick, chain free conveyancing. Ruthin is the location of the property. Is there any advice you can give?
Flying freeholds in Ruthin are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Ruthin you would need to get your solicitor to go through the deeds thoroughly. Your mortgage company may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Ruthin may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold property.
Should I stop the direct debit for my mortgage with Coventry BS once a completion date for my home sale in Ruthin has been set?
You would be well advised to continue paying any mortgage payments to Coventry BS until the mortgage is paid off on completion as part of your Ruthin conveyancing.