FAQs: Conveyancing (Sales and Purchase)
Q: How long will it take to exchange and complete my transaction?
A: This is the most commonly asked question and the most difficult to answer!
In most cases it is likely that there will be a chain of transactions and within the chain a mortgage(s) will be required. If that is the case, depending on the length of the chain, we find that transactions can take at least 4-6 weeks to exchange contracts and then another week or so between exchange of contracts and completion, making a total of 5-8 weeks from start to finish.
We always do as much as we can to ensure that your transaction exchanges as quickly as possible and that the completion date you require is achieved.
Q: How will I know what stage my sale/purchase is at?
A: You can call your Conveyancing Executive or his/her Assistant on the telephone number provided on your introductory letter or access our website to check the progress of your case using your file reference and unique pin number. These details can be found on the introduction letter we send to you.
Q: Why do we need Identification from you?
A: Under Money Laundering Regulations we are required to check that our clients are who they say they are and to guard against mortgage fraud.
Q: Why do you need money up front?
A: In our Client Care letter at the beginning of the transaction we will provide an illustration of our fees and disbursements and request a sum of money on account for disbursements.
We ask for this payment at the beginning of your transaction to make sure that we have enough money from you to cover the majority of the costs of the disbursements which we have to pay out, for example, Local Search fees or Official Copies of your property from the Land Registry.
Any funds need to be paid as quickly as possible to enable us to progress your transaction. Funds can be paid by Debit Card or cheque.
Q: Can you act from the person we are selling to or buying from as well as us?
A: We cannot act for your seller or buyer if we are acting for you as this could result in a conflict of interest. A conflict of interest happens where we feel that to give information or advice to one person may be against the interests of the other person.
Q: My property is leasehold, what does this mean?
A: If your property is Leasehold, your property will be subject to a Lease. The Lease contains various clauses and covenants which must be complied with. We will need to see the Lease in order to check information on behalf of your lender.
Upon completion we will obtain confirmation that your ground rent and service charges are paid up to date or that appropriate apportionments are made to cover any overpayments or deficits.
Q: Why do people who will occupy the property I am buying have to sign a consent form?
A: Occupiers need to sign a form to confirm they are aware of your Mortgage. By signing the consent they are confirming that if you default on your mortgage they will leave the property if required to do so by your lender. The consent may need witnessing by an independent solicitor.
Q: What is the Council of Mortgage Lenders?
A: Most Lenders are members of the Council of Mortgage Lenders, which sets out specific conditions and procedures that we must comply with before the advance monies referred to in the mortgage offer can be requested.
Q: What is a redemption statement?
A: This is a statement from your existing mortgage company which shows the amount owing on your mortgage. It will also list payments made to the account and any redemption penalties.
Q: What is a redemption penalty?
A: Some mortgages offer you a discount, fixed rate or cash back but if you repay the mortgage within a certain period you have to pay extra to compensate the lender for not keeping the mortgage for the agreed period.
Q: What is Stamp Duty Land Tax?
A: This is a tax paid on the purchase of a property over a certain price. We have to collect this from you prior to completion to enable us to complete the Stamp Duty Land Tax formalities within the required 30 days.
Remortgage
Q: How long will it take to complete my transaction?
A: Langleys aim to complete your remortgage within 4-6 weeks from the date of your Mortgage Offer, subject to all conditions being satisfactorily met in accordance with your lender requirements.
However, completion can be delayed beyond this timescale if your remortgage involves additional work, for example, a Transfer of Equity or Deed of Postponement.
Q: How will I receive my funds on completion?
A: We send your balance funds to you by one of the following methods:
- some lenders may send the balance due to you direct
- by Telegraphic Transfer (TT) direct from ourselves (we make a standard charge for this which is set out in our introduction letter)
- by Cheque direct from ourselves (which will be posted first class within 24 hours of completion).
- Options (a) and (b) are covered in our Client Questionnaire and you must ensure that you complete the details to enable us to comply with the option which suits you best.
Q: What happens upon completion and who will pay off my mortgage?
A: On the day of completion we will:
- pay off all secured lending on your property. The only time we will not repay all lending on your property is if you have instructed us that you wish to postpone any of your charges on your property, this is subject to lender approval
- send any balance monies to you by way of Cheque or TT as indicated in your Questionnaire
- serve Notice on your Landlord/Management Company if your property is Leasehold
- confirm to you and your existing lender in writing that completion has taken place.
Q: How will I know what stage my remortgage is at?
A: You can call your Conveyancing Executive or his/her Assistant on the telephone number provided on your introductory letter.
Q: What is a shortfall?
A: A shortfall can occur when you owe your current lender(s) more than you are borrowing from your new lender.
Q: Why do people who will occupy the property I am buying have to sign a consent form?
A: Occupiers need to sign a form to confirm they are aware of your Mortgage. By signing the consent they are confirming that if you default on your mortgage they will leave the property if required to do so by your new lender. The consent may need witnessing by an independent solicitor.
Q: What will happen to my over payments?
A: If any overpayments are made to your current lender these will be refunded to you by one of the following methods:
- direct from the lender into your account
- by way of cheque from the lender
- via ourselves from your lender
Q: When should I stop my direct debits?
A: You should only cancel Direct Debits once you have been advised by us on completion to do so. This will be confirmed to you in writing by us on the day of completion.
You must not recall any payments made to your existing mortgage account as these will be included within the redemption figure we use when redeeming your mortgage.
It is a condition of your mortgage that all existing mortgages are repaid in full on completion of your remortgage.
Q: What is a Deed of Postponement?
A: A Deed of Postponement is a document which confirms that the lender of second charge/second secured loan allows you to postpone their charge, allowing your new lender to have a first charge.
This must be agreed and all documentation signed before completion of your new remortgage.
Q: What is a Transfer of Equity?
A: A Transfer of Equity is where you either transfer someone on or off the Title Deeds. We must ensure that the names mentioned on the Mortgage Offer match the names mentioned in the Deeds or on the Title at the Land Registry.