I am nearing exchange of contracts for my apartment in Newham and the EA has just telephoned to warn that the purchasers are changing their property lawyer. I am told that this is due to the fact that the mortgage company will only work with solicitors on their approved list. Why would a big named lender only engage with specific solicitors rather the firm that they want to choose for their conveyancing in Newham ?
Mortgage companies have always had an approved set of law firms they are content to work with, but in the last few years big names such as HSBC, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for many years.
Mortgage companies blame a rise in fraud by way of justification for the pruning – 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. 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 buyers are unlikely to have any impact on this.
The Newham conveyancing solicitors that I appointed last week on my house acquisition in Newham have suddenly closed. I chose them because I needed a firm on the Coventry BS conveyancing panel and my preferred Newham lawyer was not. I issued them a cheque for £250 in advance. What do I do now?
If you have an estate agent involved then inform them straight away so that they advise the vendors 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 Coventry BS 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 lawyers should be in a position to help.
Various online forums that I have frequented warn that are a common cause of delay in Newham conveyancing transactions. Is there any truth in this?
The Council of Property Search Organisations (CoPSO) released conclusions of a review by MoveWithUs that conveyancing searches do not figure amongst the top 10 causes of delays in the conveyancing process. Searches are not likely to be the root cause of holding up conveyancing in Newham.
I've recently found out that there is a flying freehold issue on a property I have offered on two weeks back in what should have been a straight forward, no chain conveyancing. Newham is where the house is located. Is there any guidance you can give?
Flying freeholds in Newham are rare but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Newham you would need to get your solicitor to go through the deeds thoroughly. Your bank may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Newham may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold property.
I have been advised by a few property agents in Newham to get a quote from a property lawyer using your seach tool. What’s the financial incentive for Estate Agents to market your site over another?
We refuse to offer any commission for sending work in our direction. We found it would be just too difficult to pay a commission because a client could think, ‘How come the agent getting a kickback? Why aren’t I getting any benefit too?’ So we decided to step away from that.
In sourcing the internet for the term conveyancing in Newham it brings up numerous solicitorsin the vicinity. With so much choice what is the best way to find the right solicitor for purchase transaction?
The best way of finding the right conveyancer is via personal referral, so ask colleagues and family who have bought a property in Newham or a local estate agent or financial adviser. Costs for conveyancing in Newham differ, so it's advisable to secure at least three fee calculations from different companies. Dont forget to clarify that the costs are guaranteed not to increase.