We have said it before, and we will likely say it again: purchasing a property is one of the most financially demanding ventures that you can undertake. However, it does not only require money and time but also trust, and that trust must flow in all directions within the proceedings in order to make the purchase go smoothly.
A hugely important part of buying a property is arranging a mortgage from a mortgage lender, such as a bank. In order to agree to lend you the money for the property, the bank will need to trust you, and this trust can be gained by working with a reputable conveyancing solicitor.
This blog will explain the meaning and importance of lenders panels and offer details on the panels Lisa’s Law is already on.
What is a lenders panel?
Quite simply, a lenders panel is a list of solicitors a mortgage lender is happy to work with. The firms on their list are firms in which they trust, and have assessed to be reputable and reliable. Firms they do not trust will not make the panel.
Why do lenders need their own solicitors?
Mortgage lenders are another piece of the puzzle when it comes to purchasing a property, and their needs and security matter just as much as the individual buyer.
They require their own solicitors to make sure that the property is investigated properly, and is worth the loan that they will be providing. Solicitors can also help lenders to make sure that their mortgage is registered against the property at the end of the purchase and to avoid fraud. If lenders simply paid the loan to buyers there is a risk that the buyers could disappear with the loan without the lender’s mortgage being registered. For this reason, lenders never pay loans directly to buyers.
It is worth remembering that lenders legal fees will often be covered by the buyers.
What types of things do solicitors help lenders with?
Solicitors have a range of duties when it comes to advising lenders. For instance, they must report to the lenders’ any change of circumstances. This could be like a buyer’s income dropping during the purchase, divulging information that the buyers are borrowing from friends or family members as well, but lenders do not know about it and therefore may be lending too much. Solicitors can also let lenders know if the property’s prices drops, in which case, the buyers may be borrowing more that they require.
What happens if a buyer is using a firm which is not on the lenders panel?
This is not to be advised as it essentially means that there will be three solicitors required： one for seller, one for buyer and a third one for the lender. This means that the process can take much longer and the buyer will have to pay two solicitor’s fees.
What lender panels is Lisa’s Law a member of?
We are pleased to say that we are on all major lenders panels, as we have proven to be a reputable and reliable firm, not only when it comes to conveyancing, but in all of our practice areas. So if you are with HSBC, Lloyds, Santander, Halifax or any other major branch, we are on their trusted list. Not only these larger corporations, but we are also on the panels list of many smaller banks as well. Find the full list here.
If you cannot see your chosen lender on here, simply let us know. Due to us being on many major lenders panels, it is very simple for us to be added to more.
Have questions? Get in touch today!
Call us on 020 7928 0276, phone calls are operating as usual and will be taking calls from 9:30am to 6:00pm.
Email us on info@lisaslaw.co.uk.
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