Frequently asked questions relating to the Loughborough Building Society Solicitor Panel from members of the public
What is the rationale as to why all solicitors aren't included on the Loughborough Building Society Conveyancing 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.
Our lawyer has identified a problem with the lease for the flat we are purchasing. The other side have put forward defective title insurance as a solution. We are content with insurance and will cover the costs. Our lawyer has advised that as he is on the Loughborough Building Society conveyancing panel he must ensure that the lender is happy with this solution. Are we the client or is Loughborough Building Society?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and Loughborough Building Society are the client. A precondition to being on the Loughborough Building Society approved panel is to comply with the CML Handbook requirements (last updated for this lender on Loughborough Building Society). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that Loughborough 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.
I see that you have a search directory listing firms on the Loughborough Building Society conveyancing panel. Do firms pay you a commission if I retain them for my own house purchase?
We are a listing service only for law firms wishing to communicate if they are on the Loughborough Building Society conveyancing panel or other lender panels. We do not charge referral fees to the any conveyancer that you subsequently appoint.
I am buying a new build flat and getting a mortgage with Loughborough Building Society. 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 Loughborough Building Society 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 Loughborough Building Society conveyancing panel in your location.
Is it common for Loughborough Building Society to withdraw a mortgage offer and what would be the reasoning?
Lenders such as Loughborough Building Society can revoke their mortgage offer although this rarely happens. should Loughborough Building Society withdraw their offer they may or may not inform you or the lawyer as to the reasons why. There are various possible reasons but here are a number of examples:
- Many mortgage offers have an expiry date. Your lawyer should check this. Loughborough Building Society may amend or withdraw an offer before the end of its validation period if an offer extension is requested and following a re-evaluation of the property the value of the security is below a level which is acceptable to them.
- Amendments if purchase price adjusted and the loan to value limits exceeded by this. Please note that Loughborough Building Society conveyancing panel solicitors would be obliged to notify Loughborough Building Society of a change in the price of the property.
- Following advice from the valuer 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 has to take account a recent change in taxation
- Where the sale is not at arms length for value to unconnected persons
I have decided to exercise my right to buy my property off the council. I have a mortgage offer with Loughborough Building Society. Conveyancing is new to me. Can I proceed without a solicitor easily? I think we can but we keep being told I should have 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 Loughborough Building Society you will need to appoint a solicitor on the Loughborough Building Society conveyancing panel.
Can I register a complaint to Loughborough Building Society about the lawyers being on the Loughborough Building Society conveyancing panel?
There is little point in complaining directly to Loughborough Building Society. Every solicitor firm and conveyancer must have a complaints procedure. Usually one can find this information from the solicitor’s or conveyancer’s website or ask at their office. They must tell you about it if you ask.
The Legal Ombudsman will make sure that your complaint is properly dealt with by the solicitor. It can also advise you how to complain.
If a licensed conveyancer does not have a complaints procedure or will not tell you about it, contact the Council for Licensed Conveyancers (CLC), which will make sure that your complaint is properly dealt with by the conveyancer. Please see below for more information.