I am in the process of selling my house in Ivybridge and the EA has just telephoned to advise that the purchasers are appointing a new property lawyer. The excuse is that the lender will only deal with property lawyers on their conveyancing panel. Why would a leading mortgage company only engage with certain law firms rather the firm that they want to select for their conveyancing in Ivybridge ?
UK lenders have always had panels of law firms that can represent them, but in recent years big names such as Yorkshire Building Society, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Mortgage companies attribute this action to a rise in fraud as the reason for the cull – 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 claims that it is being contacted daily by practices 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 buyers are not going to have any impact on this.
I own a freehold house in Ivybridge but nevertheless pay rent, why is this and what is this?
It is rare for properties in Ivybridge and has limited impact for conveyancing in Ivybridge but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back hundreds of years, but the Rent Charge Act 1977 barred the creation of new rentcharges from 1977 onwards.
Previous rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence post 2037 will be dispensed with completely.
The Ivybridge conveyancing lawyers that just started acting on my purchase in Ivybridge have suddenly shut down. I only went with them because I had to have a solicitor on the Kent Reliance conveyancing panel and my preferred Ivybridge lawyer was not. I cut them a cheque for £250 in advance. What should be my next steps?
Assuming that you have an Estate Agent in the equation then inform them straight away so that they can let the sellers know that there may be a slight delay due to the problems encountered. Hopefully they will be sympathetic and urge their lawyer to send a new set of papers to your new solicitors. You will need to appoint new lawyers that are on the Kent Reliance conveyancing panel and notify the lender. If you have paid over any money, it will hopefully be held by the SRA as money in an intervened firm's bank accounts is transferred to the SRA. Then, the SRA or the intervention agent looks at the intervened firm's accounts to work out who the money belongs to. To claim your money you will need to contact the SRA. If the SRA cannot return money you are owed from the firm's bank accounts, or if they can only return part of the money, you can apply to the Compensation Fund for a grant. Your new solicitors should be in a position to help.
Should my lawyer be making enquiries concerning flooding as part of the conveyancing in Ivybridge.
Flooding is a growing risk for solicitors dealing with homes in Ivybridge. There are those who buy a house in Ivybridge, completely expectant that at some time, it may suffer from flooding. However, leaving to one side the physical damage, where a house is at risk of flooding, it may be difficult to get a mortgage, suitable building insurance, or sell the premises. There are steps that can be taken during the course of a house purchase to forewarn the purchaser.
Conveyancers are not qualified to offer advice on flood risk, however there are a various searches that may be initiated by the buyer or by their lawyers which should give them a better appreciation of the risks in Ivybridge. The conventional set of information given to a buyer’s solicitor (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a usual inquiry of the owner to discover if the premises has historically flooded. In the event that the premises has been flooded in past and is not disclosed by the owner, then a purchaser could commence a compensation claim resulting from an inaccurate answer. A purchaser’s conveyancers should also commission an enviro report. This should disclose if there is a recorded flood risk. If so, more detailed investigations should be conducted.
How does conveyancing in Ivybridge differ for new build properties?
Most buyers of new build property in Ivybridge approach us having been asked by the developer to exchange contracts and commit to the purchase even before the property is built. This is because new home sellers in Ivybridge typically buy 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 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 accustomed to new build conveyancing in Ivybridge or who has acted in the same development.
Am I right to be wary that third parties that I am dealing with are encouraging me to use an online conveyancing firm as opposed to a local Ivybridge conveyancing practice?
As with lots of professional services, often input from relatives can be worth their weight in gold. But there are lots of parties with a keen interest in a conveyancing transaction; estate agents, mortgage brokers and lenders may suggest lawyers to select. On occasion the lawyers might be known to one of the organisations as one of the best in their field, but occasionally there is an underlying financial incentive behind the endorsement. You have the discretion to select your preferred lawyer. However, bear in mind that some banks operate an approved list of law firms you must use for the lender aspect of your house move.