UK Mortgage | Legal Counsel Approved by Lenders

In the UK, a Loan is a way for most people, especially for office workers to buy a property. With rents in the UK going through the roof, more people are considering taking out a bank loan to purchase a property to have a stable place to live.

The most familiar procedure of purchasing a property is that once the budget has been confirmed and the offer has been accepted by the seller, the seller will need to appoint a property solicitor to handle the whole purchase process for them. 

However, it is not necessarily for the buyer to appoint a solicitor with their will. 

What is a Bank Panel? 

The buyer’s conveyancing must transfer both the deposit and the loan funds to the seller. 

When obtaining a loan to purchase a property in the UK, it is common practice to engage a property solicitor to represent both the bank, and the lender, and provide various legal documents. 

Therefore, it is crucial to instruct a trustworthy property solicitor for the lender’s benefit. 

This means the buyer must gain the Lender’s approval for their chosen property solicitor before proceeding. Failure to do so may result in the lending bank denying the loan application. 

To facilitate the choice of property buyers, the vast majority of UK banks will pre-screen law firms that they believe are qualified, reputable and can be confidently instructed to add to their list of Panels to work with. That being said, banks are usually only willing with solicitors who are on their panel. 

What can Property Solicitors do for Lenders? 

If the property is purchased using a mortgage, the buyer will need to provide the Lender with the property solicitor’s details and the Lender will then need to transmit the Mortgage Offer to the solicitor. 

Meanwhile, the solicitor is obliged to report to the Lender on relevant circumstances and changes regarding the buyer and the property, such as the results of the AML check on the buyer’s fund for the purchase of the property, and whether there has been a change in the price of the property. 

*AML check – Anti-money laundering checks are one of the customer due diligence measures required by regulated businesses to comply with money laundering regulations and prevent financial crime. 

All of this can potentially affect the amount the Lender ultimately lends to a buyer. 

Before handing over the property, the solicitor will submit a title deed requesting the loan funding following the lender’s drawdown regulations. 

So if the buyer doesn’t instruct a solicitor on the Bank Panel, will it still work? 

Although there is no requirement to instruct a solicitor on the bank’s Panel to buy a house in the UK. But if you don’t, the Lender will employ another solicitor on their Panel in addition to the solicitor employed by the buyer to look after the transaction. 

Then with the seller’s property solicitor, there will be a total of 3 solicitors involved in the property transaction and communication between the parties will take longer. 

At the same time, the Lender’s legal fees for appointing a solicitor are generally paid by the buyer, and if the buyer does not choose the solicitor on the Panel, the buyer will have to pay an additional amount for legal fees, so it is not recommended that you do so. 

Which banks are Chan Neill Solicitors on the Panel? 

Chan Neill Solicitors has been established for 20 years and has built up a good reputation and credibility among clients and various partner organisations as a professional legal institution worthy of trust. 

We are Panel members of over 60 banks and financial institutions in the UK, including Lloyds Bank, Barclays, HSBC, Metro Bank, Royal Bank of Scotland, Halifax and other smaller banks or financial institutions. 

As well as providing legal services to both the buyer and the bank at the time of the purchase, our property solicitors can take care of the formalities required after handover, which include: 

– Payment of Stamp Duty Land Tax ( SDLT) 

– Land Registry 

When the registration of the property is complete, the solicitor will forward the registered title to you to confirm that you own the property. The solicitor will also send a copy of the title deeds to your lender. 

If you are planning to purchase a property with a loan, you are welcome to contact Chan Neill Solicitors on Instagram, Facebook, LinkedIn, and Twitter or call us on 020 7253 7781. Our team of property solicitors have extensive experience in acting for both local and overseas buyers and will be able to help you on your journey to settling in your new home.