FAQs for the Cambridge Building Society Conveyancing Panel from members of the public
I am progressing with the sale of my house and the estate agent has just called to say that the purchasers are swapping law firm. The reason given is that Cambridge Building Society will only deal with solicitors on their conveyancing panel. Why would a major mortgage company only engage with specific lawyers?
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 Nationwide , have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 25 years.
Lenders blame a rise in fraud by way of justification 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 hearing daily from firms 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.
Our lawyer has identified a legal deficiency with the lease for the property we are purchasing. The seller’s lawyers have suggested title insurance as a workaround. We are content with insurance and will pay for it. Our solicitor says that as he is on the Cambridge Building Society conveyancing panel he must be satisfied that the lender is happy with this solution. Are we the client or is Cambridge Building Society?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and Cambridge Building Society are the client. A precondition to being on the Cambridge Building Society approved panel is to comply with the CML Handbook requirements (last updated for this lender on Cambridge Building Society). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that Cambridge Building Society 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 lawyer will have no choice but to discontinue acting for you.
How up to date is your search tool for the Cambridge Building Society conveyancing panel? Do Cambridge Building Society send you an updated list?
The firms themselves provide us confirmation that they are on the Cambridge Building Society conveyancing panel as opposed to being supplied with a list from Cambridge Building Society directly.
I am considering applying for a Cambridge Building Society mortgage for purchase of a newly converted (under development) with 70% LTV. Is it compulsory to choose a solicitor on the conveyancing panel for Cambridge Building Society?
In theory, you could use a solicitor that is not on Cambridge Building Society conveyancing panel, but Cambridge Building Society would require one of their panel solicitors to be instructed to act in their interests, and you'd have to pay for this - so most people instruct a panel solicitor. It's also easier, as otherwise you'd have to deal with two solicitors for the same transaction.
We are getting a further advance on our mortgage from Cambridge Building Society as we wish to carry out alterations or improvements our home. Do we need to appoint a solicitor on the Cambridge Building Society conveyancing panel to deal with the paperwork?
Cambridge Building Society do not ordinarily instruct a member of their conveyancing panel to deal with such a matter. If they did require any legal work then you would need to ensure that such a lawyer was on the Cambridge Building Society panel
I was thinking of purchasing my friend’s property. Once we agree a price, what’s the best way to move forward? I hope to get a mortgage with Cambridge Building Society. Is there anyway to cut out the solicitors to save us both money? My father said that years ago it was possible to take the documents into the local Land Registry office and they did the rest
If you are getting a mortgage with Cambridge Building Society involved you will need to appoint a solicitor on the Cambridge Building Society conveyancing panel. We would not encourage you to both use the same solicitors' firm. There are clear conflict of interest issues and it's not going to make a huge difference to the speed of the overall process. So as not to hold things us you should pass on your solicitors details to Cambridge Building Society. Feel free to use our search tool to look for a licensed conveyancer or solicitor on the Cambridge Building Society conveyancing panel.
Cambridge Building Society have agreed my mortgage in principle, my offer on house has been accepted, now what?
The estate agent will want to know who your solicitors are (make sure these solicitors are on the lenders panel). Call up Cambridge Building Society or your broker and complete any relevant paperwork. Cambridge Building Society will tell you what documents they want. Cambridge Building Society will instruct a valuer. The valuer will get in touch with the estate agent or seller to book an appointment. Once conducted (assuming no problems) it takes about week to get a mortgage offer. Cambridge Building Society will issue the offer to you and your lawyer. The transaction will then take it’s course according the nature and complexity of the conveyancing.