I am in the process of selling my house in Theale and the estate agent has just called to warn that the buyers are changing their solicitor. The excuse is that the lender will only engage with property lawyers on their approved list. On what basis would a leading mortgage company only deal with certain law firms rather the firm that they want to appoint for their conveyancing in Theale ?
UK lenders have always had panels 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 worked with them for more than 15 years.
Mortgage companies blame a rise in fraud as the reason for the reduction – criteria have been stiffened as a smaller panel is easier to monitor. Banks tend not to disclose 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 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. The buyers are unlikely to have any impact on this.
The Theale conveyancing firm handling our Theale conveyancing has uncovered a discrepancy when comparing the surveyor’s assumptions in the home valuation survey and what is in the title deeds. My lawyer has advised that he is duty bound to ensure that the bank is OK with this discrepancy and is content to go ahead. Is my lawyer’s approach correct?
Your conveyancing practitioner must comply with the UK Finance Lenders’ Handbook requirements which do require that your lawyer disclose any incorrect assumptions in the lender’s valuation report and the legal papers. Should you refuse to allow your lawyer to make the appropriate notification then your lawyer will have no choice but to discontinue acting for both parties.
How does conveyancing in Theale differ for new build properties?
Most buyers of new build or newly converted property in Theale approach us having been asked by the builder to sign contracts and commit to the purchase even before the property is completed. This is because builders in Theale usually 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 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 accustomed to new build conveyancing in Theale or who has acted in the same development.
We're first time buyers - had an offer accepted, yet the agent advised that the owners will only move forward if we use the agent's chosen solicitors as they are insisting on a ‘quick sale’. Our preferred option is to instruct a family conveyancer used to conveyancing in Theale
It is unlikely the sellers are driving this. Should the vendor desire ‘a quick sale', alienating a serious purchaser is counter productive. Speak to the owners direct and explain that (a)you are motivated purchasers (b)you are ready to progress, with finances in place © you are chain free (d) you wish to move quickly (e)but you intend to appoint your preferred Theale conveyancing solicitors - not the ones that will give their negotiator at the agency a introducer fee or achieve conveyancing figures set by senior management.
My wife and I are purchasing a garden flat in Theale. When we first instructed solicitor, they assured us that they were on all major UK lender panels. The financial adviser emailed today to advise that they are not on the RBS approved list. If it turns out to be true, what should we do? Do we just choose a new property lawyer that is on their approved list or should we cover the costs for separate representation, with RBS appointing their own preferred conveyancer.
If you are acquiring a property requiring a mortgage it is normal for the purchaser’s solicitors to also represent the mortgage company. In order to act for a bank or building society a lawyer has to be on that lender's conveyancing panel. An application has to be made by the lawyer to the lender to become a member of the lender's panel and there are increasingly strict criteria which the property lawyer has to satisfy. Some banks now require their panel firms to be part of the Law Society’s Conveyancing Accreditation Scheme. Your solicitor should contact RBS and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You don't have to instruct a firm on RBS's conveyancing panel as you are at liberty to use your preferred Theale lawyers, in which case your legal fees may increase, and it may delay matters as you have another set of people involved.