Can banks really tell me which solicitor I can/can not use?

Daxineenas

I am in the middle of trying to get my ex-husband taken off the mortgage deeds - been going on two years and bank have messed up - but now they are telling me that the solicitors are no longer on their panel and I can not use them! They have also closed the original claim and are telling me I have to start the whole process over again!!

My alternate solicitors that I wish to use for conveyancing (sell this place if I can and relocate) are also apprently not on the list so can not be used! The local firms on the panel list are expensive and so will up my costs of moving horrendously. Can the banks really do this?

ACG

Yes.
Banks have criteria for different reasons - some solicitors have and do commit fraud, some dont meet the banks requirements.

The bank are dishing out hundreds of thousands of pounds, they have to ensure as best they can it doesnt go missing.

If you dont like the lenders requirements, speak to other lenders.

Conrad

Yes it's a lot to do with recent fraud cases, hence all lenders now tend to operate a panel of acceptable law firms.

No way will you get around this I'm afraid.

Many lenders have thier own law firm that will charge minimal suns usualy, JUST to sort the removal of the departing borrower (they don't handle the divorce or anything else). Usualy about £200 max as lonbg as they operate a fee free legal package (fee free in terms of the normal remo work that is).

SuperHan

Try having a word with your solicitor. When I bought my house, my solicitor wasn't on the approved board, so he gave me another name to use, and the bank communicated with the other solicitor who then passed things on to my solicitor. Maybe your solicitor has a similar arrangement set up?

meer53

I remortgaged with Halifax and took my ex of the mortgage at the same time. The solicitors fees were included but i had to pay £390 extra for the transfer of equity. I was never offered a choice of solicitor by Halifax, i was just contacted by their solicitor. I wasn't selling though so slightly different situation.

kingstreet

AFAIK You can use any solicitor you like. The lender then has the right to appoint a different solicitor to act for IT at your expense.

40 years ago there were always two solicitors employed, on by the borrower, one by the lender. Then, the borrower paid for both too.

HSBC recently re-introduced this concept. It has now relaxed slightly and will have your solicitor act for it if the firm is an accredited CQS member. If not, you are paying two lots of fees, as mentioned earlier.

Back to the OP. If you are selling only, you can use any solicitor you like. Leave the transfer of equity if you are, as you're only accruing extra expense which would be automatically dealt with in a sale anyway.

Daxineenas

So although I want to use a reputable firm of solicitor's - Thompson's - a benefit I get from being a Trade Union member - if they are not on the Bank's panel this is impossible to do? Personally, although I understand the fraud issues, I think this is outrageous and is costing me money!

My solicitor has spoken to one of the other solicitor's who have agreed to take the case on, but I still have to pay them for their work and pay the new solicitors for future work.

Daxineenas

kingstreet wrote: »

AFAIK You can use any solicitor you like. The lender then has the right to appoint a different solicitor to act for IT at your expense.

40 years ago there were always two solicitors employed, on by the borrower, one by the lender. Then, the borrower paid for both too.

HSBC recently re-introduced this concept. It has now relaxed slightly and will have your solicitor act for it if the firm is an accredited CQS member. If not, you are paying two lots of fees, as mentioned earlier.

Back to the OP. If you are selling only, you can use any solicitor you like. Leave the transfer of equity if you are, as you're only accruing extra expense which would be automatically dealt with in a sale anyway.

So sell the property with both of us signing off the sale papers, but all the quity comes to me? Then I can go ahead and purchase elsewhere?

kingstreet

If you are selling the property, the solicitor of your choice receives the funds on completion day and repays the mortgage, giving unencumbered title to the purchaser.

If there are any residual funds, he will disperse those funds according to his instructions from the vendor, you and your former partner.

You will then receive whatever residue you have agreed to transferred to you by BACS, CHAPS (at your expense) or cheque.

Your former partner can choose to be independently represented in this, as he could in the case of the transfer of equity, where he was to be removed from the mortgage and the deeds.

If, at a later date you decide to purchase a property, you must then adhere to the lender's solicitor panel requirements. You appoint a solicitor on its panel to act for you and the lender, or you go off-panel and the lenders will appoint a solicitor to act for it, at your expense.

Daxineenas

That's great - thanks kingstreet.

Daxineenas

The problem is slightly more complicated in that it is my ex who wants to purchase the house! With him still on the deeds can this bedone as suggested?