Frequently asked questions relating to the Hodge Equity Release Conveyancing Panel from members of the public
My husband and I are FTBs. Within the last couple of days our property lawyer has sent a preliminary report and documents to look through with a view to exchanging next week. Hodge Equity Release have this afternoon contacted us to advise us that there is now an issue as our lawyer is not on their conveyancing panel. Please explain?
If you are buying a property with the assistance of a mortgage it is usual for the purchaser's solicitors to also act for the purchaser's lender.
In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your property lawyers should contact Hodge Equity Release and see if they can apply for membership of the Hodge Equity Release conveyancing panel, but if that is not viable Hodge Equity Release will instruct their own lawyers to represent them. You are not legally obliged to appoint a law firm on the Hodge Equity Release conveyancing panel as you are at liberty to use your preferred lawyers, in which case it will likely add costs, and it may delay matters as you have another set of people involved.
We are getting closer to an exchange and my parents having sent the 10% deposit to my lawyer. I am now advised that as the deposit has not come from me my lawyer needs to make a notification to my lender Hodge Equity Release. I am advised that, being on the Hodge Equity Release conveyancing panel and acting on their behalf he must inform Hodge Equity Release if the balance of the mortgage advance is not just from me. I informed the bank about my parent’s contribution when I applied for the home loan so is it really necessary for this now to be an issue?
Your lawyer is obliged to check with Hodge Equity Release to make sure that they are aware that the balance of the purchase price is not from your own funds. Your solicitor can only report this to Hodge Equity Release if you agree, failing which, your lawyer must cease to continue acting.
Are the lawyers identified as being on the Hodge Equity Release conveyancing panel, together with their details provided by Hodge Equity Release?
The law firm practices themselves provide us confirmation that they are on the Hodge Equity Release conveyancing panel as opposed to being supplied with a list from Hodge Equity Release directly.
What happens if my solicitor is expelled from the Hodge Equity Release Conveyancing panel before completion?
First, this is a very rare occurrence. 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 for a fee.
My wife and I have arranged a further advance on our mortgage from Hodge Equity Release as we wish to carry out a loft conversion to our home. Do we need to appoint a solicitor on the Hodge Equity Release conveyancing panel to deal with the paperwork?
Hodge Equity Release do not ordinarily appoint firms on their approved list of lawyers 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 Hodge Equity Release list
My existing mortgage is with Hodge Equity Release. My grandfather retired last week and wants to pay off the mortgage left on the property. After Hodge Equity Release 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 Hodge Equity Release conveyancing panel? I do not intend to live at the property once the Hodge Equity Release mortgage is discharged.
Although you do need to retain the services of a lawyer they dont
need to be on the Hodge Equity Release 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. As the property is your main residence you need
not pay CGT but you should speak with your accountants in any event.
I have a mortgage with Hodge Equity Release. Conveyancing was finalised 12 months ago. Should I wish to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Hodge Equity Release?
You must advise Hodge Equity Release prior to letting out your property as this is likely to be a breach of Hodge Equity Release’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 Hodge Equity Release directly. You need not do this via a Hodge Equity Release conveyancing panel solicitor.