I am nearing exchange of contracts for my maisonette in Scarborough and the EA has just e-mailed to say that the purchasers are changing their conveyancer. The reason given is that the mortgage company will only engage with property lawyers on their approved list. Why would a major lender only engage with certain solicitors rather the firm that they want to appoint to handle their conveyancing in Scarborough ?
Banks have always had an approved set of law firms they are willing to work with, but in the past few years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for more than 15 years.
Mortgage companies blame a rise in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to maintain. 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. Some 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 purchasers are not going to have any impact on this.
My apartment in Scarborough is up for sale and I have accepted an offer. Does my property lawyer have to be required to be on the Coventry BS conveyancing panel in order to deal with repayment of my mortgage?
Ordinarily, even if your lawyer is not on the Coventry BS conveyancing panel they can still act for you on your sale. It might be that the lender will not release the original deeds (if applicable and increasingly irrelevant) until after the mortgage is paid off. You should speak to your lawyer directly before you start the process though to ensure that there is no problem as lenders are changing their conditions fairly frequently currently.
is it true that all Scarborough conveyancing solicitors on the Yorkshire BS conveyancing panel are overseen by the SRA?
As a firm of solicitors, in order to be on the Yorkshire BS conveyancing panel they would need to be governed by the Solicitors Regulatory Authority. The majority of mortgage companies do list licenced conveyancers on their panel and in such a situation the practice would be regulated by the CLC.
I am buying a property in Scarborough. One unusual aspect is that the roof has a solar panel. Lloyds have issued a mortgage offer so presumably this is not a concern to them. Why is my solicitor raising questions about the panel?
Given that you are obtaining a mortgage with Lloyds your lawyer must comply with the conveyancing requirements contained in Part two of UK Finance Lenders’ Handbook for Lloyds. The CML Handbook sets out minimum specifications for solar panel roof-space leases, and solicitors are required to report to Lloyds where a lease does not meet these specifications. The specifications relate to the installation of panels on properties countrywide and is not restricted to Scarborough.
I currently have a mortgage with Nottingham for my property in Scarborough. Conveyancing was finalised months ago. If I am intending to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Nottingham?
Your original mortgage agreement with Nottingham will provide that you need their approval before letting out your property as this is likely to be a breach of Nottingham’s mortgage conditions. It may be that Nottingham will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Nottingham directly. You need not do this via a Nottingham conveyancing panel firm.
How does conveyancing in Scarborough differ for new build properties?
Most buyers of new build property in Scarborough contact us having been asked by the seller to exchange contracts and commit to the purchase even before the house is ready to move into. This is because new home sellers in Scarborough typically acquire 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 conveyancers 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 used to new build conveyancing in Scarborough or who has acted in the same development.
How do I find a Scarborough conveyancing solicitor on the lender conveyancing panel? I have a car and am prepared to travel up to 10miles to attend the solicitor.
You can use the find a conveyancing panel tool on this page. Please choose the lender and your location, in this case Scarborough and you will see a number of lawyer located nearest Scarborough. Alternatively you can type in the name of your proposed law firm and see if they are listed as being on the lender solicitor panel.