When purchasing a property with a mortgage, your lender will require you to instruct a conveyancing solicitor. As buying a house is one of the most expensive purchases you’ll make, it’s risky to buy a property without instructing an expert. But, why is this?
Why Do I Need a Solicitor?
A number of legal problems can occur and a large number of legal documents need to be completed in order to secure legal title to the property for yourself/the lender.
Residential Conveyancing involves the legal transfer of home/land ownership from a seller to a buyer. Therefore, when purchasing a house with a mortgage, it’s common for your solicitor to act for you and your lenders.
To be able to act for a lender, a law firm has to be on their solicitor panel and satisfy strict criteria. This has been introduced in an attempt to minimise fraud and ensure a consistently excellent service. (We are on the panels of all the major banks and building societies in the UK.)
Your solicitor will contact the seller’s solicitor to let them know they’re instructed and request a copy of the draft contact and gain any other details including the Law Society protocol documents and title. They will examine the draft contract and raise any enquiries with the seller’s solicitor.
Will This Change Depending on the Lender?
Different mortgage lenders have different criteria for specific issues. For example, Barclays accept personal searches, Bradford and Bingley only accept personal searches carried out in accordance with the search code monitored by the PCB, and mortgage lender Pepper doesn’t accept them at all. Another example of this is that Halifax accepts search insurance, however HSBC does not.
We also recently had a case where Pepper wouldn’t accept a gift from a boyfriend because they aren’t legally a relative.
Read more: Conveyancing with Gifted Money: The Basic Need to Knows
Another example of lender’s having different requirements is when it comes to whether or not they require an original or copy of the building regulations. Some high street lenders require it just for self-build properties, some don’t need it but may request it if the property has been converted in the last 10 years, and some require an original/copy of the building regulations.
This is a very complex area and criteria of particular lenders changes all the time. Some lenders will leave no stone unturned and more often than not ‘most’ do require building regs.
How Will a Solicitor Look After Your Best Interests?
To ensure you are aware of any issues that could affect your new home, your solicitor will raise searches on factors such as flooding, planning constraints and permissions (in order of importance the local search is the most important, then water and drainage, then environmental. Other searches may be required based on the location of the property).
Read more: Searches for Buying a House: The Need-to-Know Info
They will then work to help resolve any property related legal problems that arise from the searches and surveys. The lender in the majority of cases relies on us to ensure the searches are satisfactory. We will refer matters which could adversely affect their security, but do not as standard send searches to the lender or advise them of the result if they are clear.
Once this is completed and all enquiries/requirements have been satisfied, your solicitor will work with your seller’s solicitor to move towards exchange of contracts. This confirms your contractual agreement to buy the property, and the seller’s agreement to sell.
Up to this point, you can change your mind, but after the contracts are exchanged they are legally binding and you could face heavy financial penalties if you pull out.
Your solicitor and your seller’s solicitor will work with you to agree on a date for completion (The completion date is agreed before exchange in 99% of cases). This takes place when the fees are paid and the purchase money is transferred to the seller.
After completion, your solicitor will help you prepare your tax return and organise payment of the Stamp Duty Land Tax/Land Transaction Tax to HMRC/The Welsh Revenue Authority. They will also register you as the owner of the property, as well as your mortgage lender as the lender at the Land Registry.
Read more: Step by Step Guide to Buying a House
Considering Moving Soon?
We understand that purchasing a property can be confusing and you need a solicitor you can trust. That’s why we’ve achieved accreditation under the Law Society’s Conveyancing Quality Scheme, and provide our clients direct access to experienced solicitors.
To find out how our residential conveyancing solicitors can make your life easier, call us on 02920 40 40 20.
*Lending criteria correct at time of this article*
