I am one month into the sale of my ground floor flat in Honiton and the estate agent has just called to say that the buyers are switching conveyancer. The excuse is that the lender will only deal with solicitors on their conveyancing panel. Why would a leading lender only engage with certain law firms rather the firm that they want to appoint to handle their conveyancing in Honiton ?
UK lenders have always had panels of law firms that can represent them, but in recent years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Banks blame a rise in fraud as the reason for the pruning – 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 says 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. The purchasers are not going to have any impact on this.
My husband and I are nearing an exchange on a flat in Honiton and my mum and dad have transferred the ten percent deposit to my solicitor. I am now advised that as the deposit has been sent from someone other than me my solicitor needs to disclose this to my lender. I am advised that, in also acting for the mortgage company he must advise them that the balance of the purchase price is not just from me. I advised the mortgage company concerning my parents' contribution when I applied for the home loan, so is it really necessary for him to raise this?
Your conveyancing practitioner is legally required to clarify with lender to make sure that they know that the balance of the purchase price is not from your own resources. The solicitor can only report this to your bank if you agree, failing which, your lawyer must cease to continue acting.
I have been told that property searches are the number one cause of delay in Honiton conveyancing transactions. Is this right?
The Council of Property Search Organisations (CoPSO) has noted the determinations of research by MoveWithUs that conveyancing searches do not figure within the common causes of delays in the conveyancing process. Searches are unlikely to be the root cause of holding up conveyancing in Honiton.
I am buying my first flat in Honiton benefiting from help to buy. The builders refused to budge the amount so I negotiated £7000 of extras instead. The house builders rep suggested that I not disclose to my conveyancer about the extras as it may adversely affect my loan with the lender. Is this normal?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
I decided to have a survey completed on a property in Honiton prior to retaining lawyers. I have been told that there is a flying freehold overhang to the property. My surveyor advised that some lenders tend not grant a mortgage on such a home.
It depends who your proposed lender is. Bank of Scotland has different instructions from Birmingham Midshires. Should you wish to telephone us we can look into this further via the appropriate bank. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Honiton. Conveyancing will be smoother if you use a solicitor in Honiton especially if they are accustomed to such properties in Honiton.
I note that you have a post code search directory listing law firms on the lender conveyancing panel. Do Honiton conveyancing firms pay you a commission if I appoint them for my own conveyancing?
We are a listing service only for law firms wishing to communicate if they are on the bank conveyancing panel or other lender panels. We do not charge referral fees to the any conveyancer that you subsequently appoint for your conveyancing in Honiton.