I am in the process of selling my maisonette in Stepney and the estate agent has just called to say that the buyers are swapping property lawyer. The reason given is that the mortgage company will only work with solicitors on their conveyancing panel. Why would a major mortgage company only work with specific lawyers rather the firm that they want to choose for their conveyancing in Stepney ?
Lenders have always had panels of law firms that can act for them, but in the last few years big names such as Yorkshire Building Society, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Mortgage companies blame a rise in fraud as the reason for the reduction – criteria have been narrowed as a smaller panel is easier to maintain. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Some 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. Your purchasers are not going to have any sway in the decision.
Please explain the implications if my lawyer’s firm is removed from the Kent Reliance Solicitor panel ahead of completing my conveyancing in Stepney?
The first thing to point out is that, this is very unlikely to happen. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have to instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by a regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
Should my solicitor be raising questions about flooding as part of the conveyancing in Stepney.
Flooding is a growing risk for solicitors conducting conveyancing in Stepney. Plenty of people will acquire a property in Stepney, completely aware 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, satisfactory insurance cover, or sell the premises. Steps can be carried out as part of the conveyancing process to forewarn the buyer.
Solicitors are not best placed to offer advice on flood risk, but there are a various searches that can be undertaken by the purchaser or by their conveyancers which will figure out the risks in Stepney. The conventional set of property information forms given to a purchaser’s lawyer (where the solicitors are adopting what is known as the Conveyancing Protocol) includes a usual question of the seller to determine if the property has historically flooded. If flooding has previously occurred which is not revealed by the vendor, then a buyer could bring a compensation claim stemming from an incorrect reply. A purchaser’s solicitors will also conduct an environmental search. This will higlight whether there is a recorded flood risk. If so, further investigations should be initiated.
I'm converting the mortgage on my primary property to a BTL mortgage with Nationwide Building Society and intend to use the remaining equity as a down payment on another house. The area we are interested in is Stepney. Will your lawyers be able to act for the two banks and tie in the two deals?
Do use our comparison tool on this page to check that the solicitors are on the appropriate lender panels. Assuming that they are the conveyancer should be able to connect the two conveyancing matters but you should talk with you solicitor and make apparent your desired outcome and requirements.
Is it best to instruct a Stepney conveyancing practitioner who is local to the property I am hoping to buy? I have an old university friend who can carry out the conveyancing but they are based 200miles drive away.
The benefit of a high street Stepney conveyancing practice is that you can pop in to execute documents, hand in your identification documents and apply pressure on them where appropriate. Having local Stepney know how is a plus. That being said it's more important to get someone that will pull out all the stops for you. If you know people who instructed your friend and the majority were happy that must surpass using an unknown Stepney conveyancing solicitor just because they are Stepney based.
I have just had an offer accepted on an apartment in Stepney and the mortgage adviser that we are using recommended his solicitor. They quoted £1000 plus VAT and 3rd party costs. Does this sound like a good deal?
You should not rely on one quote. One should obtain like-for-like quotes for your conveyancing in Stepney. Then pick one that you are comfortable with and crucially, is on the approved panel of the lender that you are sourcing your mortgage from.