HSBC and self conveyancing

pauldono

Hello,

My partner and I had two properties with two HSBC mortgages. We decided to separate (very amicably!) and divide the properties. One in my name only and the other sold with the profits towards new HSBC mortgage for ex. We went to HSBC together and explained the situation.

We pointed out that we would be dealing with the land registry directly for the names on the deeds to go to my name only and in terms of legal advice we were perfectly comfortable with the arrangement.

Both new mortgages agreed in principle.

My partner's mortgage for new flat all gone through.

I was told I was fine dealing with everything my self.

NOW - HSBC saying they misadvised me. They can not accept what we did with Land Registry. It needs to be done by solicitor. We explained that Land Registry happy to talk to HSBC directly to explain that it is very routine process and that we have completed all the documentation with ID perfectly fine.

Solicitors are quoting me £300-400 for the privilege of dealing with this but say they would have to restart all the Land Registry again.

When I asked the HSBC mortgage adviser what on earth they do in other self conveyancing cases he said that he and his colleagues have never heard anything like it before.

I have repeatedly asked HSBC to explain to me the legal basis of what they are insisting on. I have even said I would instruct a solicitor if they felt we needed to demonstrate independent legal advice. I just need to understand exactly what HSBC are asking for so I can instruct a solicitor. All they keep saying is I need a solcitor and then they will deal with them directly. It is like given an open cheque to a solicitor as the process is so vague and woolly I could be paying in the region of £300-400 (based on general quotes so far).

I did start out by saying that there is no dispute between ex and myself so having both names on my current home is not an issue.

I have attempted repeatedly to get detail from the branch mortgage adviser, his area manager, the numerous faceless call centre mortgage centre people and have got absolutely no where. This has taken over five months so that previous mortgage offer is at risk of lapsing.

I believe I am of sound mind but frankly dealing with HSBC for something that is straight forward has been so incredibly frustrating.

If anyone, anywhere has had a similar experience or has some insight please share. Thank you in advance.

I put this down to how companies increasingly get their costs down which is to fragment every process (i.e. re-mortgaging) so that the tasks can be done by non-professional staff but when it comes to being treated as an individual you are absolutely up the swanee without a paddle.

silvercar

There are two parties, you and HSBC; you can't act for HSBC because you are not independent, so a solicitor has to act for HSBC. It is normal for lenders to insist that a solicitor acts for them.

As to what you want the solicitors to do:
1. Transfer of equity on your property from joint names to your name, on the deeds and mortgage
2. Sale of second property and redeeming of that mortgage
3. Purchase of property for your ex with the new mortgage in ex's name on mortgage and deeds.

Yorkie1

I would imagine that the main 'self-conveyancing' issue relates to the sale of your property. Lenders want the assurance that the sale proceeds will be applied towards paying off the mortgage. A solicitor gives professional undertakings to this effect, but anyone else can't give such undertakings, so lenders do require a solicitor to do this for them.

pauldono

Thanks Silvercar and Yorkie1. Just to say that we have already done parts 2 and 3. In Part 1 we have already started Part 1 in that we transferred equity on deeds and HSBC agree in principle to mortgage being in my own name. The legal input required now is confirmation of equity on current property to my name. We are just waiting to see whether HSBC will accept the solicitor confirming we have followed the proper processes (Land Registry) or whether they require the whole process again to be started and finished by solictor. HSBC obviously accept that there has been poor instruction at the start of this in that they have agreed to pay Land Registry fee if we end up in using it.

I totally agree that there are certain undertakings needed to be done by a solicitor but in this case it was complicated by misdirection by HSBC in the initial stages. I would also assert that there is part of this process that can be done by people themselves - dealing with Land Registry etc. but there needs to be a way to confirm this is appropriate and correct for the requirements of creditors and the law.

Thrugelmir

pauldono wrote: »

I totally agree that there are certain undertakings needed to be done by a solicitor but in this case it was complicated by misdirection by HSBC in the initial stages.

I would question that assertion. As HSBC employees work in a bank not in a conveyancing solicitors office.

Your post illustrates a lack of basic knowledge.

Often it takes longer to check what somebody else has done rather than do the task yourself at the outset.

pauldono

I understand the roles of a conveyancing department and the role of a mortgage adviser. The advice provided by HSBC was based on their consultation with their own underwriters. I would ask we keep these forums polite and balanced. If you feel I have missed some fundamental issues then please ask me to clarify. I still feel that people can do self conveyancing if they know what they are doing and are clear about the work involved.

Thrugelmir

An underwriter isn't a conveyancer either. Their comments would merely relate to the financial aspects of the mortgage application. Which would still require full application for a formal decision.

You should have sought the correct professional advice at the outset.

Conrad

pauldono wrote: »

I still feel that people can do self conveyancing if they know what they are doing and are clear about the work involved.

This is farily leftfield on your part.

It's like me saying I could do your job with no training, just on the off chance and my discharging the duties all in accordance with company rules, H&S, employment law and so on. In the history of Banbking there are tens of thousands of possible legal errors that have occurred and as such this history informs the shape of the conveyancing process.

Lenders just cant have random individuals processing thier own conveyance, where would it end? You'd need an army of Lawyers to consider every possible permutation and potential error before allowing such a system to become company practice, so clearly an impractical proposition.


You seem like a strident type that would not hesitate to sue later if by chance you'd made an error which you would argue "HSBC should have forseen as I am only a lay person". The downside for a Bank is vast.

Conrad

pauldono wrote: »

I still feel that people can do self conveyancing if they know what they are doing and are clear about the work involved.

How would the Bank know you are clear, of sound mind, capable, informed?

I must try driving the train next time it's late, I know what to do, whats the problem:rotfl:

pauldono

Not quite sure of the motivation about some of the responses. People can do self conveyancing in certain circumstances but there would ultimately need to be reference to an appointed solicitor. We did have legal (professional advice) at the outset for the transfer of some of our property.