I am selling my ground floor flat in Swanley and the estate agent has just telephoned to warn that the purchasers are changing their conveyancer. The excuse is that the bank will only engage with solicitors on their approved list. On what basis would a major mortgage company only deal with certain law firms rather the firm that they want to appoint to handle their conveyancing in Swanley ?
UK lenders have always had an approved set of law firms that can represent them, but in the last few years big names such as Yorkshire Building Society, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many years.
Banks point to the increase in fraud by way of justification for the cull – criteria have been narrowed as a smaller panel is easier to monitor. No lender will say 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 sway in the decision.
Our solicitor has discovered a a legal deficiency with the lease for the flat we are purchasing in Swanley. The seller’s lawyers have put forward title insurance as a solution. We are content with insurance and will cover the costs. Our solicitor says that he must ensure that the lender is happy with this solution. Are we the client or is the bank?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the mortgage company are the client. Your conveyancing practitioner must comply with the UK Finance Lenders’ Handbook conditions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your conveyancer will have no choice but to discontinue acting for you.
We're in Swanley, FTBs purchasing with a mortgage (lender is Aldermore , and our solicitor is on the Aldermore conveyancing panel). How long should the conveyancing process take?
The fact that your lawyer is on the Aldermore conveyancing panel is a help. It would almost certainly delay matters if they were not. However, no solicitor should guarantee a timeframe for your conveyancing, due to third parties outside of your control such as delays caused by lenders,conveyancing search providers or by the other side’s solicitors. The time taken is often determined by the number of parties in a chain.
I have been on the look out for a flat up to £305k and identified one round the corner in Swanley I like with open areas and railway links nearby, however it's only got 52 years unexpired on the lease. There is not much else in Swanley in this price bracket, so just wondered if I would be making a mistake buying a short lease?
If you require a home loan that many years will likely be problematic. Reduce the offer by the expected lease extension will cost if it has not already been discounted. If the existing proprietor has owned the property for at least 2 years you may request that they start the process of the extension and pass it to you. You can add 90 years to the existing lease and have £0 ground rent by law. You should speak to your conveyancing solicitor concerning this.
My husband and I are novice buyers - had an offer accepted, but the agent told us that the vendor will only proceed if we use the agent's preferred solicitors as they need a ‘quick sale’. We would rather use a high street solicitor with experience of conveyancing in Swanley
It is highly unlikely the owners are driving this. Should the vendor desire ‘a quick sale', alienating a genuine purchaser is is going to put the whole deal at risk. Contact the sellers directly and make the point that (a)you are keen to buy (b)you are ready to progress, with finances arranged © you do not need to sell (d) you intend to proceed fast (e)but you intend to appoint your own,trusted Swanley conveyancing firm - not the ones that will earn the estate agent a referral fee or achieve conveyancing thresholds demanded by head office.
I dont have enough spare cash to pay a 10% deposit on my apartment purchase in Swanley , but I still want to exchange. What can I do?
One option is to try and agree a lower deposit. Most vendors will accept a lower deposit or even no deposit for a first time buyer or 100% mortgage. Be aware though that if you fail to complete you will still need to hand over a minimum of 10% of the purchase price regardless of how much deposit was agreed.
You can also agree a simultaneous exchange and completion as no deposit is required for this however neither party will be tied in until completion actually takes place and it can be risky if sellers change their mind at the last minute