FAQs for the Hodge Equity Release Conveyancing Panel from members of the public
I am selling my maisonette and the estate agent has just telephoned to say that the purchasers are appointing a new conveyancer. I am told that this is due to the fact that Hodge Equity Release will only work with solicitors on their approved list. Why would a major mortgage company only work with certain solicitors?
Lenders have always had panels 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 more than 15 years.
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 being contacted daily by practices 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.
I do hope you can help me. My lawyer is informing me me that he has to apply for a Local Authority search stemming from the fact that the firm are on the Hodge Equity Release approved lawyer panel. Do I not have a choice here?
Unfortunately both you and your lawyer have little choice here. Given that you are taking out a loan with Hodge Equity Release your lawyer has to comply with their conditions as set out in their version of the CML Conveyancing Handbook. Your lawyer would have previously signed the Terms and Conditions of Hodge Equity Release’s conveyancing panel appointment which obliges them to follow the CML Handbook requirements last updated Hodge Equity Release. even if you were a cash buyer you would be ill advised not to carry out a local authority search.
I am looking for online conveyancing estimates. Can I be confident that all the firms that are listed on your site are on the Hodge Equity Release conveyancing panel?
The law firms listed on our site have assured us via an online form that they are on the Hodge Equity Release panel and agreed to advise us to take down their listing in the event of removal off of the Hodge Equity Release panel. To date we have not been informed by either a mortgage company or a member of the public that the data about a specific firm being on the Hodge Equity Release conveyancing panel is incorrect.
What happens if my solicitor is suspended from the Hodge Equity Release Conveyancing panel prior to 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 for a fee.
When it comes to mortgage companies such as Hodge Equity Release do lawyers have to be pay a fee to be on the conveyancing panel?
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.
We were going to get a DIP from Hodge Equity Release this week so we can work out what to offer on a property we like as otherwise we only have online calculators to go by (which aren't taking into account credit checks etc).Do the Hodge Equity Release recommend a solicitor on the Hodge Equity Release conveyancing panel, or is it better to go independently
You will need to appoint solicitors independently although you'll need to choose one on the Hodge Equity Release conveyancing panel. The solicitor represents both you and the Hodge Equity Release through the process.
I am currently in the process of buying my council flat. I have a mortgage agreed with Hodge Equity Release. Conveyancing is new to me. 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 Hodge Equity Release you will need to appoint a solicitor on the Hodge Equity Release conveyancing panel.