Q and A’s regarding the Ecology Building Society Conveyancing Panel from members of the public
I am progressing with the sale of my maisonette and the estate agent has just e-mailed to advise that the purchasers are switching law firm. The reason given is that Ecology Building Society will only work with solicitors on their conveyancing panel. On what basis would a big named mortgage company only work with specific lawyers?
Mortgage companies 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 Santander, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for decades.
Banks 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 solicitor has discovered a legal deficiency with the lease for the apartment we are purchasing. The other side have put forward defective title insurance as a workaround. We are content with insurance and will cover the costs. Our solicitor says that as he is on the Ecology Building Society conveyancing panel he must ensure that the lender is happy with this solution. Who is the client here, us or Ecology Building Society?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and Ecology Building Society are the client. A precondition to being on the Ecology Building Society approved panel is to comply with the CML Handbook requirements (last updated for this lender on Ecology Building Society). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that Ecology 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.
Do all the firms listed on your directory have online case tracking as I was under the impression that this was a precondition of being on the Ecology Building Society conveyancing panel?
No. There is no CML Part 2 or Building Society Association requirement relating to online case tracking. Some law firms operate such technology and some don't.
I am considering applying for a Ecology 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 Ecology Building Society?
There is nothing to stop you using your solicitor but Ecology Building Society 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.
Do the majority of lenders operate their own panel of solicitors?
Many lenders do operate a restricted conveyancing panel but a lot of lenders allow any solicitors to join their panel so long as they meet their criteria. Each lender sets their own criteria. For example the Ecology Building Society conveyancing panel requirements are different to Ecology Building Society’s conveyancing panel criteria.
For 5 years I had a mortgage with Ecology Building Society. My godfather has just retired and wants to pay off the mortgage left on the property. After Ecology Building Society is paid, I want to transfer the property to my mother's name; How long does the process take? Do we need two separate solicitors on the Ecology Building Society conveyancing panel? I do not intend to live at the property once the Ecology Building Society mortgage is discharged.
Although you do need to retain the services of a lawyer they dont
need to be on the Ecology Building Society panel.
You will need a solicitor to draw up the transfer and
to deal with the Land Registry formalities. The only thing you need to
consider is that by selling at an undervalue so ask your lawyer about
the implications. There could be an inheritance tax issue if you die
within 7 years of this. There's no capital gains tax for you as it is
your main residence.
I am currently in the process of buying my council flat. I have a mortgage offer with Ecology Building Society. Conveyancing is not something I have any knowledge of. Can I proceed without a solicitor easily? I think we can but we keep being told I should use one. Any advice?
It is not advisable proceed with a house purchase without a solicitor. The council's solicitor are not acting for you. You need a solicitor for a number reasons. One of which is to verify what plans the Council have for repairs and refurbishment for the next five years. Many leaseholders have been stung for contributions of thousands of pounds. In any event if you are getting a mortgage with Ecology Building Society you will need to appoint a solicitor on the Ecology Building Society conveyancing panel.