I am in the process of selling my apartment in Erdington and the EA has just called to warn that the purchasers are appointing a new conveyancer. The excuse is that the mortgage company will only work with property lawyers on their approved list. Why would a big named mortgage company only deal with certain solicitors rather the firm that they want to select to handle their conveyancing in Erdington ?
UK lenders have always had an approved set of law firms that can act for them, but in the past few years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for decades.
Lending institutions justify this action to a rise in fraud as the reason for the reduction – criteria have been tightened as a smaller panel is easier to keep an eye on. Banks tend not to reveal how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms 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 purchasers are unlikely to have any sway in the decision.
Our conveyancer has uncovered a a legal deficiency with the lease for the property we are purchasing in Erdington. The other side have put forward title insurance as a workaround. We are happy with insurance and will cover the costs. Our conveyancer has advised that he must check that the mortgage company is willing to move forward with this solution. Who is the client here, us or the mortgage company ?
Notwithstanding that you have a mortgage offer from the mortgage company does not mean to say that the property will meet their requirements for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook specifications. You and the bank are the client. These conveyancing instructions have to be complied with.
We see that you have a post code search directory identifying firms on the Bank of Ireland conveyancing panel. Do companies pay you a commission if I instruct them for our own conveyancing in Erdington?
We are a listing service only for law firms wishing to communicate if they are on the Bank of Ireland conveyancing panel or other lender panels. We do not charge referral fees to any conveyancer that you subsequently appoint for your conveyancing in Erdington.
A colleague advised me that where I am buying in Erdington 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 occasionally included in the estimate for your Erdington conveyancing searches. It is a large document of more than thirty pages, listing and detailing important information about Erdington around the property and the people living there. It incorporates an Aerial Photograph, Planning Applications, Land Use, Mobile Phone Masts, Rights of Way, the Erdington Housing Market, Council Tax Banding, the demographics of People living in the area, the dominant type of Housing, the Average Property Price, Crime statistics, Local Education with plans and statistics, Local Amenities and other useful data about Erdington.
How does conveyancing in Erdington differ for newly converted properties?
Most buyers of new build property in Erdington contact us having been asked by the builder to sign contracts and commit to the purchase even before the premises is built. This is because developers in Erdington tend to buy the real estate, 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 property lawyers 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 Erdington or who has acted in the same development.
Over the last few months I have been searching for a ground for flat up to £235,500 and identified one round the corner in Erdington I like with amenity areas and railway links nearby, however it's only got 49 years unexpired on the lease. There is not much else in Erdington suitable, so just wondered if I would be making a mistake buying a short lease?
If you need a mortgage the shortness of the lease may be a potential deal breaker. Reduce the price by the amount the lease extension will cost if it has not already been discounted. If the existing owner has owned the property for a minimum of twenty four months you may ask them to start the process of the extension and pass it to you. You can add 90 years to the current lease with a zero ground rent applied. You should speak to your conveyancing solicitor about this.