Co operative Bank Solicitor Panel Example Support Desk Enquires from members of the public
I am in the process of selling my flat and the EA has just called to say that the purchasers are swapping law firm. I am told that this is due to the fact that Co operative Bank will only work with property lawyers on their conveyancing panel. On what basis would a leading mortgage company only work with specific lawyers?
UK lenders have always had an approved set 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 point to the increase 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.
My conveyancer has uncovered an inconsistency when comparing the information in Co operative Bank’s home valuation report and what is revealed within the title deeds. My lawyer informs me that as he is on the Co operative Bank conveyancing panel he must ensure that the bank is with this discrepancy and is still content to lend. Is my conveyancer’s approach appropriate?
A precondition to being on the Co operative Bank approved panel is to comply with the CML Handbook requirements (last updated for this lender on Co operative Bank) which do require that your lawyer disclose any incorrect assumptions in the lender’s valuation report and the legal papers. 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.
I see that you have a search directory listing firms on the Co operative Bank conveyancing panel. Do firms pay you a referral fee if I appoint them for my house purchase?
We are a listing service only for law firms wishing to communicate if they are on the Co operative Bank conveyancing panel or other lender panels. We do not charge referral fees to the any conveyancer that you subsequently appoint.
My grandfather passed away 10 months ago and as sole heir and executor was left the house. The house had a small mortgage remaining of approximately £8000. I want to transfer the title deeds into my name whilst I re-mortgage to Co operative Bank , pay off the mortgage etc. Is this possible?
If you intend to re-mortgage then Co operative Bank will insist on your using a conveyancer on the Co operative Bank conveyancing panel. Here is link to the Land Registry online guidance around what to do when a property owner dies. This will help you to understand the registration process behind changing the details re the registered title. in your case it would appear that you are effectively purchasing the property from the estate. Your Co operative Bank conveyancing panel solicitor pays the new mortgage money into the estate, the estate pays off the old mortgage, the charge is released and you become the owner and the Co operative Bank mortgage is registered as a charge at the Land Registry.
When it comes to lenders such as Co operative Bank do lawyers have to be pay a fee to be on the list of approved solicitors?
We are not aware of any lender fees to be on their panel although some do charge an administration charge to deal with the processing of the conveyancing panel application.
Is it the case that all solicitor practices on the Co operative Bank conveyancing panel overseen by the Solicitors Regulatory Authority?
As a firm of solicitors, in order to be on the Co operative Bank conveyancing panel they would need to be regulated by the SRA. Many lenders do allow licenced conveyancers on their panel in which case such firms would be regulated by the Council of Licensed Conveyancers (CLC).
I have a mortgage with Co operative Bank. Conveyancing has been completed a year ago. Should I wish to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform Co operative Bank?
Co operative Bank must be informed of your intention prior to letting out your property as this is likely to be a breach of Co operative Bank’s mortgage conditions. In many cases banks or building societies will allow you to rent out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Co operative Bank directly. You need not do this via a Co operative Bank conveyancing panel lawyer.