I am nearing exchange of contracts for my house in Morley and the EA has just telephoned to say that the purchasers are swapping solicitor. I am told that this is due to the fact that the mortgage company will only deal with property lawyers on their conveyancing panel. Why would a major mortgage company only engage with specific solicitors rather the firm that they want to select for their conveyancing in Morley ?
Mortgage companies have always had an approved set 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 represented them for more than 25 years.
Lending institutions point to the increase in fraud as the reason for the pruning – criteria have been tightened 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. 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.
we are a couple who wish to acquire a purpose built apartment in Morley with a mortgage from Alliance & Leicester .We would like to retain our Morley conveyancing solicitor but Alliance & Leicester says his firm is not listed on their approved list of firms. It seems we have no choice but to instruct a Alliance & Leicester panel lawyer or retain our preferred solicitor and fork out for one of their panel ones to act for them. This seems very unfair; Can we not simply insist that Alliance & Leicester use our lawyer?
No, not really. The home loan issued to you contains various provisions, one of which will be that lawyers must be on the Alliance & Leicester approved list. Until recently, most banks had large numbers of solicitors on their panels: a borrower could choose one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. A further alternative is for your solicitors to apply to be on the conveyancing panel for Alliance & Leicester
Will our conveyancer be asking questions about flooding as part of the conveyancing in Morley.
Flooding is a growing risk for lawyers dealing with homes in Morley. There are those who purchase a house in Morley, completely aware that at some time, it may suffer from flooding. However, leaving to one side the physical damage, if a property is at risk of flooding, it may be difficult to obtain a mortgage, adequate insurance cover, or dispose of the property. Steps can be carried out during the course of a house purchase to forewarn the purchaser.
Solicitors are not best placed to offer advice on flood risk, but there are a number of checks that may be carried out by the buyer or on a buyer’s behalf which should give them a better understanding of the risks in Morley. The conventional set of information given to a purchaser’s solicitor (where the Conveyancing Protocol is adopted) includes a standard inquiry of the vendor to find out if the premises has suffered from flooding. In the event that the premises has been flooded in past and is not notified by the seller, then a purchaser may issue a legal claim for losses as a result of such an inaccurate response. A purchaser’s solicitors may also carry out an environmental report. This should disclose whether there is a recorded flood risk. If so, additional inquiries should be carried out.
Do I need to be wary that brokers that I am dealing with are encouraging me to use a nationwide conveyancing firm as opposed to a High Street Morley conveyancing company?
As is the case with lots of service providers, often suggestions from family and friends can be worth their weight in gold. Yet there are lots of people with a keen interest in a conveyancing transaction; estate agents, financial adviser and lenders might all put forward lawyers to select. On occasion the conveyancers might be known to one of the organisations as being good in their field, but occasionally there might be a commercial relationship behind the endorsement. You have the right to appoint your own conveyancer. You need to be aware that many lenders have an approved list of solicitors you have to use for the lender related work in your home move.
At what stage do I incur the Stamp Duty Land Tax due for my purchase in Morley?
Your property lawyer should complete a stamp duty return on your behalf during your Morley conveyancing transaction for signature. After completion your conveyancer will submit your STL application to the Tax Authorities and - assuming they have the funds - settle any Stamp Duty payable on your behalf.