pHaving to change solicitors during Purchase

Plastikman

I am a first time buyer and currently in the process of buying a property with a move in date of next week.

I have been dealing with an Independant Financial Adviser and a local solicitor firm( who is a sole practitioner). We have applied for our mortgage through the Co Operative Bank.

I received a phone call earlier today from my IFA stating that I will need to change my solicitor, because the Co-Op do not deal with sole practitioners. I have been very happy with my current solicitors, but I will have to move elsewhere to another company.

I am very annoyed that it has taken until the week before my move in date to tell me this. Not only is it going to be a hassle in going through a different company, but I am going to have to pay a lot more extra money as I will be paying two different solicitors.

I feel either my IFA or the Co-op should have brought this to light a lot earlier and I am looking to make a complaint to hopefully claim back some of the extra money I will be pauying.

Has anyone had similar dealings like this before and would I best be making my complaint to my Financial adviser or the Co- Op?

Any of your thoughts will be appreciated.

Thanks

P

silvercar

three possibilities as alll should have known that a lot of mortgage lenders don't deal with sole practioners:

your IFA, the Co-op and your solicitor.

Your IFA may not have known that your solicitor was a sole practiioner, the co-op wouldn't have known, your solicitor would have known and he would have known that there are a lot of lenders that won't deal with soles. Ring him up and ask his advice, he may have a working relationship with a practice to which he sub-contracts the release of mortgage funds.

Plastikman

The adviser seemed to be passing a lot of the blame to the lender, so I am going to take my complaint up with them.

I really can't see them paying any compensation out, but you can only try.

Bossyboots

As silvercar has already explained, your lender would not have known your solicitor was a sole practitioner. Your adviser almost undoubtedly did though if he is local and that is no doubt why he is trying to pass the buck.

As already stated, your solicitor would also have known of the difficulties of being a sole practitioner for conveyancing and could have mentioned it. In the circumstances your solicitor clearly will have to reduce his fees to the bare bone to ensure you do not lose out.

As silvercar has also said, the solicitor may have an arrangement in respect of mortgage moneys. Why don't you try asking him first and also asking what reduction in fees you are going to get.

It is very often stated in mortgage particulars anyway that you cannot use a sole practitioner so check all your paperwork before you challenge anyone on this point.

My own feelings are that your IFA will have know all the time that this was a fly in the ointment.

ginandtonic1988

The firm I work for can't act for GMAC but due to the high level of newbuild work, we often have to take purchasers with GMAC as the lender. What we do is the conveyancing and ask another solicitor to deal with the mortgage side and then we pay half of the othersides bill for dealing with the Lender who we can't. Plastikman if you can agree this with your solicitor it should work out cheaper then going to another solicitor and starting all over again.

Goodluck

Debt_Free_Chick

Many lenders have a panel of solicitors that they will accept.

Unusually - with a house purchase, the solicitor is acting for the lender AND the purchaser (in a commercial transaction, there would be two different solicotors). For this reason, any solicitor you use needs to be one that is also on the lender's panel.

The IFA should have known this, but I doublt you have suffered any financial loss, so compensation is not an option (other than for distress and inconvenience).

I think your priority must be to appoint a solicitor who is acceptable to the lender and aim to complete asap.

HTH

Plastikman

Thanks for all of your informative replies.

After having spoken to both parties yesterday, they seem to be blaming each other. It's looking to be more the adviser, as apparantley it does state the ruling regarding the sole practitioner on the application form. if this was brought to light at the time, I would have been able to change the lender.

We are now going to be paying extra to use the Co-op's own solicitor who in turn shall liase with our current one. So at least we don't have to remove our current firm from the process.

Fingers crossed that this all goes smoothly.

Plastik

silvercar

Have you asked your current solicitor why he didn't warn you that he can't act for the Co-op?