FAQs : The Virgin Conveyancing Panel from members of the public
I am selling my house and the estate agent has just texted me to say that the purchasers are swapping conveyancer. The excuse is that Virgin will only work with property lawyers on their conveyancing panel. Why would a big named lender only engage with specific law firms?
Mortgage companies 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 15 years.
Lenders 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 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.
Our conveyancer has discovered a defect with the lease for the flat we are purchasing. The other side have offered defective title insurance as a workaround. We are content with insurance and will pay for it. Our solicitor says that as he is on the Virgin conveyancing panel he must be satisfied that the lender is happy with this solution. Who is the client here, us or Virgin?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and Virgin are the client. A precondition to being on the Virgin approved panel is to comply with the CML Handbook requirements (last updated for this lender on Virgin). The CML Handbook conditions require your lawyer to disclose issues such as defects will the lease so that Virgin 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.
Do all the firms listed on your directory have online case tracking as I understood that this was a condition of being on the Virgin solicitor panel?
The Council of Mortgage Lenders or BSA do not require online case tracking. Some law firms operate such technology and some don't.
I am buying a new build flat and getting a mortgage with Virgin. Conveyancing solicitors are said to be ‘a necessary evil’ but can I do it myself?
Leaving aside the complexities and merits of DIY conveyancing you will have to appoint a solicitor on the Virgin 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 Virgin conveyancing panel in your location.
I am about to exchange contracts on a purchase with a mortgage from Virgin. The report from my solicitor mentions that Virgin could withdraw their offer before completion. Is this right?
Lenders such as Virgin can revoke their mortgage offer although this rarely happens. should Virgin withdraw their offer they may or may not inform you or the lawyer as to their reasoning. There are many potential reasons but here are a few examples:
- If the financial circumstances of the borrower have changed to the detriment and the Virgin has been notified
- If the borrower informs Virgin of a change in the loan amount agreed
- Amendments if purchase price adjusted and the loan to value limits exceeded by this. Please note that Virgin conveyancing panel solicitors would be obliged to notify Virgin of a change in the price of the property.
- Where the sale is not at arms length for value to unconnected persons
- Where the lender is on notice of a restriction or a right of pre-emption which is not at market value
The mortgage over my property is with Virgin. Conveyancing has been completed 12 months ago. If I am intending to rent out my property and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform Virgin?
Virgin must be informed of your intention before renting your property as this is likely to be a breach of Virgin’s mortgage conditions. It may be that Virgin will permit you to let out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact Virgin directly. You need not do this via a Virgin conveyancing panel firm.
I can not work out if my mortgage offer obliges me to make sure the lease term for the flat is extended prior to the completion date . I have called Virgin on various occasions and told it wasn't a problem and they would lend. My solicitor - who is on the Virgin conveyancing panel- telephoned and was told not they would not lend in accordance with their CML Handbook minimum lease term requirements. I simply dont know who is right
As long as the conveyancer is on the Virgin panel she or he must comply with the CML Handbook requirements for Virgin. Unless your lawyer obtains specific confirmation in writing that Virgin will go ahead your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask Virgin to contact your lawyer in writing confirming that they will accept the remaining number of years left on the lease.