Q and A’s regarding the RBS - Virgin One Solicitor Panel from members of the public
I am progressing with the sale of my flat and the estate agent has just texted me to warn that the purchasers are changing their law firm. The excuse is that RBS - Virgin One will only engage with solicitors on their approved list. Why would a big named mortgage company only deal with certain lawyers?
Lenders have always had panels 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 more than 25 years.
Banks point to the increase 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.
Our conveyancer has identified a defect with the lease for the apartment we are purchasing. The seller’s lawyers have suggested title insurance as a workaround. We are content with insurance and will cover the costs. Our solicitor has advised that as he is on the RBS - Virgin One conveyancing panel he must be satisfied that the lender is happy with this solution. Who is the client here, us or RBS - Virgin One?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and RBS - Virgin One are the client. A precondition to being on the RBS - Virgin One approved panel is to comply with the CML Handbook requirements (last updated for this lender on RBS - Virgin One). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that RBS - Virgin One 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 need to find a RBS - Virgin One panel solicitor in Inverness. Could you help me?
Unfortunately it’s not apparent why you need a RBS - Virgin One panel solicitor but in any event, if you can not find one on our search tool you will need to speak directly to RBS - Virgin One to find out which solicitors in RBS - Virgin One are on their panel. If you do find such a firm not listed please direct them to our site to list. After all the cost is only one £1 a month
Please explain the implications if my solicitor is expelled from the RBS - Virgin One Solicitor panel prior to completion?
The first thing to point out is that, 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 at a cost.
We expect to receive a DIP from RBS - Virgin One this week so we know how much we could potentially offer as otherwise we are dependent on web based calculators (which aren't taking into account credit checks etc).Do the RBS - Virgin One recommend a solicitor on the RBS - Virgin One conveyancing panel, or is it better to find our own lawyer
You will need to appoint solicitors independently although you'll need to choose one on the RBS - Virgin One conveyancing panel. The solicitor represents both you and the RBS - Virgin One through the process.
Intending to buy a house with a mortgage with RBS - Virgin One. I have received an online quote from a licensed conveyancer, which states: "There will be no charge for dealing with the Lender if you are obtaining a mortgage". I take this to mean that there will be no additional fee if the solicitor is on the RBS - Virgin One conveyancing panel. I wanted to make sure it means there will be no additional fees for dealing with the mortgage.
They are simply saying that the cost for acting for the lender is included in the fee being quoted. It is worth you checking that they are on the RBS - Virgin One conveyancing panel
At last I have had an offer on an apartment accepted, but there is a chain. The vendors have offered on somewhere, but not been accepted yet, and have viewings of other properties booked. My conveyancing solicitor has been instructed. What do I do now? At what point should I appy for the mortgage with RBS - Virgin One?
It is usual to have concerns where there is a chain as you are unlikely to want to be too out of pocket too early (mortgage application is approx £1k, then survey/valuation, conveyancing search costs, etc). First you should check that your solicitor is on the RBS - Virgin One conveyancing panel. As to the next stages this very much depends on the circumstances of your case, desire for this property and on the state of the market. In a hot mortgage some buyers would pally for the mortgage with RBS - Virgin One and pay for the valuation and only if it comes back ok would they pay their solicitor to press on with searches.