Q and A’s regarding the Hinckley and Rugby Solicitor Panel from members of the public
Is there a reason why all solicitors are not on the Hinckley and Rugby Conveyancing panel?
Pre- 2008 most lenders had an appetite for risk which was higher than today. The Financial Services Authority in 2010 conducted a thematic review into mortgage fraud which concluded: know the conveyancing solicitors that you are dealing with. Consequently, lenders have regularly sought more information from law firms about their operations and the individuals who work for them and set certain criteria such a completing on a minimum number of transactions. Many firms that have been excluded from lender panels have 100% healthy track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Such firms were never going to meet the criteria of volume of transactions the lenders required.
Our conveyancer has identified a problem with the lease for the apartment we are purchasing. The other side have suggested defective title insurance as a workaround. We are happy with insurance and will pay for it. Our solicitor has advised that as he is on the Hinckley and Rugby conveyancing panel he must check that the lender is happy with this solution. Who is the client here, us or Hinckley and Rugby?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and Hinckley and Rugby are the client. A precondition to being on the Hinckley and Rugby approved panel is to comply with the CML Handbook requirements (last updated for this lender on Hinckley and Rugby). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that Hinckley and Rugby 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 licensed conveyancers and solicitor practices listed on your search have online case tracking as I was under the impression that this was a precondition of being on the Hinckley and Rugby solicitor panel?
The Council of Mortgage Lenders or BSA do not require online case tracking. Some law firms operate such technology and some don't.
Can you clarify what the consequences are if my lawyer’s firm is expelled from the Hinckley and Rugby Solicitor panel before the moving date as agreed at exchange of contracts?
The first thing to point out is that, this is very unlikely to happen. In most cases even where a law firm is removed off of a panel the lender would allow the completion to go ahead as the lender would appreciate the difficulties that they would place you in if you have ti instruct a new solicitor days before completion. In a worst case scenario where the lender insists that you instruct a new firm then it is possible for a very good lawyer to expedite the conveyancing albeit that you may pay a significant premium for this. The analogous situation is where a buyer instructs a lawyer, exchanges contracts and the law firm is shut down by the regulator such as the SRA. Again, in this situation you can find lawyers who can troubleshoot their way to bring the conveyancing to a satisfactory conclusion - albeit at a cost.
Are all Conveyancing Quality Solicitors on the Hinckley and Rugby conveyancing panel?
A selection of banks and building societies now use the accreditation scheme as the starting point for Panel membership such as HSBC and Santander. The Law Society’s CQS membership however is no guarantee to lender panel acceptance. That being said,the CML have indicated that it is likely to become a pre-requisite for firms wishing to join their approved list of conveyancing solicitors.
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 Hinckley and Rugby conveyancing panel requirements are different to Hinckley and Rugby’s conveyancing panel requirements.
Planning on purchasing a house with a mortgage with Hinckley and Rugby. I have received an online quote from a licensed conveyancer, which states: "There will be no charge for dealing with the Building Society if you are obtaining a mortgage". I take this to mean that there will be no additional fee if the solicitor is on the Hinckley and Rugby conveyancing panel. I wanted to make sure it means there will be no additional fees for dealing with the mortgage.
They are simply saying that the cost for acting for the lender is included in the fee being quoted. It is worth you checking that they are on the Hinckley and Rugby conveyancing panel