Solicitors "Panels"

robatwork

Do most building societies/banks operate their own panel of solicitors to which your conveyancer must belong otherwise they won't deal with them? (like HSBC currently do although I know they are changing this policy)

ACG

A lot do yes. But a lot of lenders allow any solicitors to join their panel so long as they meet their criteria.

Gentoo365

FSA are quite tight on this so make sure that banks use appropriate legal representatives. Most banks are willing to use anyone that is correctly regulated as a solicitor or a conveyancer, so they will do some checks on anyone that is not already on their panel (i.e. they will look on the Law Society website).

HSBC seem to have been the most restrictive. But they still offer some sort of choice. Most people seem to recommend avoiding the 'default' and choose your own from the panel.

robatwork

Most advice I've read on the house buying forum is "local local local" when it comes to choosing your solicitor. And of course chances are remote that your local one is on a particular panel. I have never seen this raised as a factor when choosing your solicitor so it's something worth bearing in mind I guess

Yorkie1

robatwork wrote: »

Most advice I've read on the house buying forum is "local local local" when it comes to choosing your solicitor. And of course chances are remote that your local one is on a particular panel. I have never seen this raised as a factor when choosing your solicitor so it's something worth bearing in mind I guess

This bit reads as though you think it highly unlikely that one's chosen solicitor will be on one's chosen lender's panel.

I disagree. With the exception of HSBC, the vast majority of solicitors who conduct conveyancing regularly will be on most lenders' panels.

I know that some lenders (I think NWide is one) have of late tightened their panel criteria - but not too restrictively. If memory serves right, criteria are often that the solicitor / conveyancer has done a few cases for them in the previous 12 months, or similar.

opinions4u

And of course chances are remote that your local one is on a particular panel

Please provide evidence of this. Most established local practices are on the panel of most lenders.

kingstreet

HSBC has changed its panel, so solicitors who are members of the CQS can now be used by lender and borrower alike.

http://www.newsroom.hsbc.co.uk/press/release/hsbc_accepts_all_law_society_c

The Law Society is trying to get its CQS adopted by lenders so that a CQS accreditation means the solicitor should be acceptable to the lender without too much hassle.

http://www.lawsociety.org.uk/productsandservices/accreditation/conveyancingqualityscheme.page

robatwork

It's just an extra step that most house buyers may know nothing about when it comes to choosing a conveyancer and a mortgage - it would help if the "industry" adopted a policy that any member of the CQS was automatically on the approved list.

I actually have no idea how many conveyancers are on particular lists but if you search the Yorkshire BS approved list on their website, the nearest local sol to Thame for example is 22 miles away...

kingstreet

The problem here is one of regulation.

The FSA issued an edict to lenders not so long ago that more active "management" of their broker and solicitor panels would be viewed as "helpful" in the fight against mortgage fraud.

HSBC's reaction was to reduce the panel to 43 and to appoint Countrywide the panel manager. We all know what happened there. Other lenders have responded with varying degrees of severity.

The adoption of an accredited scheme for those involved in conveyancing appears a sensible move and should come from the CML, the lenders' trade body.

kingstreet

On the locality issue, I'd like to introduce a consideration.

I operate in two main areas. One is Stafford. The other Cannock. These are both in Staffordshire around 16 miles apart.

If Cannock clients ask their local firms for quotes, they vary little in cost terms. I once saw three quotes for a sale & purchase with less than £5 separating them.

I obtained a quote for the same client from a firm in Stafford and this was almost £200 cheaper overall. All like for like - no gerrymandering.

I've had similar examples working the other way. Stafford clients were better off using Cannock solicitors.

It appeared that the firms operated some kind of minimum fee scheme in their towns for clients in their areas. If an enquiry came from outside, it fell outside the scheme and they could charge what they wanted.

The moral of the story, is consider a solicitor a few miles away from home and you may find you save a few quid!

bigadaj

So long as you have no dealings with stan collymore down at the chase!