Q and A’s regarding the LendInvest Solicitor Panel
from members of the public
Can you please explain the reason why all property lawyers aren't included on the LendInvest Solicitor panel?
Before the recession 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.
My lawyer has discovered a difference between the surveyor’s assumptions in LendInvest’s home valuation survey and what is in the title deeds. My solicitor informs me that as he is on the LendInvest conveyancing panel he is duty bound to ensure that the lender is happy with this discrepancy and is content go ahead. Is my lawyer’s approach correct?
A precondition to being on the LendInvest approved panel is to comply with the CML Handbook requirements (last updated for this lender on LendInvest) 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 both parties.
Do I need to visit the offices of the LendInvest conveyancing panel solicitor to sign the legal charge? If so, I will choose one who does conveyancing in Liverpool
so that I can attend their offices if required.
Whereas this was necessary ten years ago, most lenders no longer require their conveyancing panel solicitor to witness the borrowers signature. You will still be obliged to provide ID Documents and there are still distinct advantages to using a local solicitor, in your case a conveyancing solicitor in Liverpool
I am buying a right to buy flat and getting a mortgage with LendInvest. How practical is it for me to do the conveyancing?
Leaving aside the complexities and merits of DIY conveyancing you will have to appoint a solicitor on the LendInvest conveyancing panel to look after their interests. Most people therefore find it easier to let the solicitor act for them and the lender. Furthermore there is minimal cost savings to made in you doing to conveyancing for yourself and another lawyer conducting the conveyancing for the lender. Please feel free to use the search tool to find a lawyer on the LendInvest conveyancing panel in your location.
I was thinking of purchasing my friend’s property. Assuming we can agree a figure, what’s the best way to proceed? I plan to obtain a mortgage with LendInvest. Is there anyway to cut out the solicitors to save us both money? My father said that years ago it was possible to take the documents into the local Land Registry office and they did the rest
If you are getting a mortgage with LendInvest involved you will need to appoint a solicitor on the LendInvest conveyancing panel. We would not encourage you to both use the same solicitors' firm. There are clear conflict of interest issues and it's not going to make a huge difference to the speed of the overall process. So as not to hold things us you should pass on your solicitors details to LendInvest. Feel free to use our search tool to look for a licensed conveyancer or solicitor on the LendInvest conveyancing panel.
In what circumstances might LendInvest amend or withdraw their mortgage offer?
Lenders such as LendInvest can withdraw their mortgage offer although this rarely happens. should LendInvest withdraw their offer they may or may not inform you or the lawyer as to their reasoning. There are various possible reasons but here are 5 examples:
LendInvest may amend or withdraw an offer if the LendInvest conveyancing panel solicitor is unable to confirm compliance with any of the conditions of the mortgage offer or if any of the terms of the mortgage offer cannot be satisfied
A cashback to the buyer, or | part of the price includes a non-cash incentive to the buyer (eg paid stamp duty land tax),or | any indirect incentive (cash or non cash) or rental guarantee, of which the lender was previously unaware
Situations where information provided by the borrower that enabled the lender to make a lending decision is fraudulent, incorrect or misleading.
Following advice from the property assessor on their lender panel or If the lender has doubts about the effectiveness of the valuation as a result of subsequent events or information received post valuation but pre completion
Where the lender is on notice of a restriction or a right of pre-emption which is not at market value
I have instructed a lawyer having checked that they are on the LendInvest conveyancing panel. Does my lawyer arrange the survey of the property?
Having read lots of house buying,I note that it is considered advisable to get your house surveyed prior to buying it. When I asked my solicitor - who is on the LendInvest conveyancing panel - on this she said they don't do this and I need to contract an independent surveyor. Is that normal?
LendInvest will need an independent valuation of the property. Your lawyer will not arrange this. Usually LendInvest will appoint their own surveyor to do this, and you will have to pay for it. Remember that this is a valuation for mortgage purposes and not a survey.
You may wish to consider appointing your own surveyor to carry out a survey or prepare a home buyers report on the property. It is up to you to satisfy yourself that the property is structurally sound before you buy it. If the survey or report reveals that building work is needed, you should tell your solicitor. You may wish to renegotiate with the seller.
Your lawyer will not organise the survey but they may be able to put you in touch with a local one that they recommend. RICS offers a find a surveyor service (just google it) where you can search for a qualified surveyor by postcode. As you are getting a mortgage with LendInvest you could contact your them to see if they have a list of approved surveyors.