Q and A’s regarding the Ahli United Bank Conveyancing Panel from members of the public
I am in the process of selling my flat and the EA has just e-mailed to warn that the buyers are appointing a new solicitor. The excuse is that Ahli United Bank will only engage with property lawyers on their conveyancing panel. On what basis would a leading mortgage company only work with specific solicitors?
Mortgage companies have always had panels of law firms they are willing to work with, but in the past few years big names such as Lloyds Banking Group, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Banks blame a rise in fraud as the reason for the cull – criteria have been tightened and a smaller panel should be easier to keep an eye on. 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, or have other concerns about them. 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 buyer’s case. Your purchasers are unlikely to have any sway in the decision.
Can you clarify something for me?. My lawyer is not to blame but, my purchase conveyancing has been going on for months. The Local Authority Search from Ahli United Bank was issued random date and we have agreed a date for me to move into the property on 6. My lawyer has advised that as she is on the Ahli United Bank conveyancing panel she needs to reorder the searches as they are no longer valid.
One of the many conditions to being on the Ahli United Bank approved panel is to comply with the CML Handbook Part 2 obligations (last updated for this lender on Ahli United Bank)which states that a local authority search be not more than half a year old. You should nevertheless ask your lawyer to check whether something called ‘search validation’ indemnity insurance is acceptable to Ahli United Bank.
Do I need to attend the offices of the Ahli United Bank conveyancing panel solicitor to execute the mortgage deed? If so, I will instruct a firm who offer conveyancing in Liverpool
so that I can pop in to their offices if required.
Most conveyancing panel lawyers for Ahli United Bank undertake all of the work via the post, internet or over the phone. This means that they can undertake your Conveyancing Transaction no matter where you live in England or Wales. However you should check if you can still book an appointment to go into appointed conveyancing lawyer if you prefer.
I am considering applying for a Ahli United Bank mortgage for purchase of a new build (under development) with 65 per cent LTV. Is it compulsory to choose a solicitor on the conveyancing panel for Ahli United Bank?
There is nothing to stop you using your solicitor but Ahli United Bank will insist on their interests being represented by a firm on their conveyancing panel. There is much more potential for delays and confusion with two solicitors involved, and it will undoubtedly be more expensive too.
Is it the case that all conveyancing solicitors on the Ahli United Bank conveyancing panel work on a no sale no fee basis?
In the main there are no requirements by lenders for their firms to operate on a no-sale-no-fee basis. There a small number of lenders who operate a very restricted conveyancing panel managed by a third party company (often termed in the industry as a ‘gatekeeper’). That third party may impose certain conditions such as non-sale-no fee on the panel firms. If you require this as a condition of your conveyancing then you should check with the conveyancing firm that this is part of their package
It is not clear whether my mortgage offer requires a lease extension . I have called Ahli United Bank on various occasions and was told they are content with the situation and they would lend. My solicitor - who is on the Ahli United Bank conveyancing panel- telephoned and was told not they would not lend in accordance with their CML Handbook minimum lease term requirements. I simply dont know who is right
As long as the conveyancer is on the Ahli United Bank panel she or he must comply with the CML Handbook requirements for Ahli United Bank. Unless your lawyer obtains specific confirmation in writing that Ahli United Bank will go ahead your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask Ahli United Bank to contact your lawyer in writing confirming that they will accept the remaining number of years left on the lease.
I was told two weeks ago that my mortgage has been agreed
to by Ahli United Bank. Is it usual for Ahli United Bank to only issue the offer once my
solicitor is approved on their conveyancing panel?
A lender would not issue an offer until they have details of a lawyer on their panel. It can take a few weeks for Ahli United Bank to deal with your lawyers application to be on the Ahli United Bank conveyancing panel. There's no guarantee that your solicitors will be accepted.