I am progressing with the sale of my house in Milton and the estate agent has just called to warn that the buyers are changing their property lawyer. The excuse is that the bank will only deal with solicitors on their conveyancing panel. On what basis would a leading lender only work with certain law firms rather the firm that they want to choose to handle their conveyancing in Milton ?
Lenders have always had an approved set of law firms that can act for them, but in recent years big names such as Santander, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for many years.
Mortgage companies point to the increase in fraud by way of justification for the pruning – criteria have been narrowed 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 being contacted daily by practices 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. The purchasers are unlikely to have any impact on this.
Can you explain why leasehold purchase conveyancing in Milton costs more?
In summary, leasehold conveyancing in Milton and elsewhere usually warrants additional work compared to freehold transactions. This includes reviewing the lease, liaising with the landlord about the service of applicable notices, obtaining up-to-date service charge and management information, procuring the freeholder’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – regardless of the fact the lease has passed through many different property solicitors hands since it was first granted.
I am considering applying for a Barclays mortgage for purchase of a newly converted (under development) in Milton with 70% loan to value. Is it compulsory to choose a solicitor on the conveyancing panel for Barclays ?
In theory, you could use a solicitor that is not on the Barclays conveyancing panel, but Barclays would require one of their panel solicitors to be instructed to act in their interests, and you'd have to pay for this - so most people instruct a panel solicitor. It's also easier, as otherwise you'd have to deal with two solicitors for the same conveyancing matter.
Will my conveyancer be raising questions concerning flooding during the conveyancing in Milton.
The risk of flooding is if increasing concern for lawyers carrying out conveyancing in Milton. There are those who purchase a property in Milton, completely expectant that at some time, it may be flooded. However, aside from the physical damage, if a property is at risk of flooding, it may be difficult to obtain a mortgage, suitable insurance cover, or sell the property. Steps can be carried out as part of the conveyancing process to forewarn the purchaser.
Solicitors are not best placed to impart advice on flood risk, however there are a various searches that may be initiated by the buyer or by their solicitors which can give them a better appreciation of the risks in Milton. The conventional set of completed inquiry forms sent to a buyer’s lawyer (where the Conveyancing Protocol is adopted) includes a usual question of the vendor to find out whether the premises has ever been flooded. If flooding has previously occurred and is not disclosed by the owner, then a purchaser may bring a legal claim for losses stemming from an incorrect reply. The buyer’s lawyers should also carry out an enviro search. This should indicate whether there is a recorded flood risk. If so, further inquiries will need to be initiated.
I am looking for a ground for flat up to £245,000 and found one near me in Milton I like with a park and railway links in the vicinity, however it's only got 51 years on the lease. There is not much else in Milton for this price, so just wondered if I would be making a grave error purchasing a short lease?
Should you need a mortgage that many years will 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 premises for at least 2 years you may request that they start the process of the extension and then assign it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should consult your conveyancing solicitor regarding this matter.
I have been advised by numerous property agents in Milton to choose a conveyancer on your site. What’s the financial advantage for Estate Agents to promote your services over a competitor’s?
We don’t offer any commission for directing people in our direction. We thought it would be too underhand a fee because a client could think, ‘How come the agent getting a kickback? Why am I not receiving any benefit too?’ We would prefer to grow our business on genuine recommendations.