FAQs for the Newcastle Building Society Conveyancing Panel from members of the public
I am in the process of selling my maisonette and the EA has just telephoned to say that the buyers are appointing a new conveyancer. I am told that this is due to the fact that Newcastle Building Society will only deal with property lawyers on their conveyancing panel. Why would a big named lender only work with certain solicitors?
Banks have always had an approved set of law firms they are willing to work with, but in the past few years big names such as Nationwide , have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for decades.
Banks blame a rise in fraud as the reason 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 hearing daily from firms 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.
We are getting closer to an exchange and my mum and dad 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 Newcastle Building Society. Apparently, being on the Newcastle Building Society conveyancing panel and acting on their behalf he must inform Newcastle Building Society if the balance of the mortgage advance is not just from me. I disclosed to the bank about my parent’s contribution when I applied for the home loan so is it really necessary for him to raise this?
Your lawyer is obliged to check with Newcastle Building Society 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 Newcastle Building Society if you agree, failing which, your lawyer must cease to continue acting.
Are the lawyers identified as being on the Newcastle Building Society conveyancing panel, together with their details provided by Newcastle Building Society?
The law firm practices themselves provide us confirmation that they are on the Newcastle Building Society conveyancing panel as opposed to being supplied with a list from Newcastle Building Society directly.
Please explain the implications if my solicitor is removed from the Newcastle Building Society Solicitor panel in advance of the completion date?
First, 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 Newcastle Building Society do solicitors 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.
I am due to exchange contracts on my flat. I had a double glazing fitted in month 2010 but did not receive a FENSA certificate or Building Regulation Certificate. My buyer's mortgage company, Newcastle Building Society are being difficult. The solicitor who is on the Newcastle Building Society conveyancing panel is saying indemnity insurance will be fine but Newcastle Building Society are insisting on a building regulation certificate. Why do Newcastle Building Society have a conveyancing panel of they don’t accept advice from them?
It is probably the case that Newcastle Building Society have referred the matter to their valuer. The reason why Newcastle Building Society may not want to accept indemnity insurance is because it does not give them any reassurance that the double glazing correctly and safely installed. It merely protects against enforcement action which is very unlikely anyway.
After shopping around on the internet I have found a solicitor having checked that they are on the Newcastle Building Society conveyancing panel. Does my lawyer arrange the survey of the property?
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Having read lots of mortgage guides,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 Newcastle Building Society conveyancing panel - on this she said they don't do this and I need to contract an independent surveyor. Is that normal?
Newcastle Building Society will need an independent valuation of the property. Your lawyer will not arrange this. Usually Newcastle Building Society 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.
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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 Newcastle Building Society you could contact your them to see if they have a list of approved surveyors.