Dual legal representation
The Role of the Solicitor in the Limited Company SPV BTL Property Purchasing Process
Role of the solicitor
Limited company buy-to-let (BTL) property purchases are on the rise, as people take advantage of the stamp duty holiday. Landlords are expanding their property portfolios with new investments. A common query raised by limited company BTL mortgage applicants is, why does it take so long for lenders to facilitate a mortgage?
To answer this, it is essential to have a deep dive into the limited company BTL property purchase process. Arranging the mortgage offer is one of the critical milestones of this process. However, there is an additional party that controls the speed of the entire transaction: the solicitor.
How to find the right solicitor
As mentioned above, the solicitor plays a vital role in a limited company BTL property purchase. The solicitor is the bridge between the lender and the vendor. The solicitor arranges the titles, conducts the initial ID checks, monitors release of the mortgage funds, and chases the vendor’s solicitor for updates.
Therefore, it is essential you find a solicitor who can deal with all the above activities. Usually, solicitors experienced in conveyancing can facilitate these services within a short period. You can search online or ask for recommendations when you are looking for a solicitor experienced in property conveyancing. Mortgage intermediaries, estate agents, and developers are also able to help homebuyers find a suitable solicitor.
Why is the quote from my solicitor so expensive?
Homebuyers frequently complain that quotes from solicitors are too expensive. This is where limited company BTL property buyers need to weigh up costs versus benefits. Well-established firms of solicitors specializing in conveyancing will usually charge higher prices.
The benefits using such a firm would bring include:
- Online tracking system which indicates the status of the case.
- Direct message facility to get updates.
- Hassle-free and smooth process.
- Online ID verification facilities (less documentation).
- Straightforward arrangement of the mortgage deposit in all circumstances. For example, when there is an inter-company transfer/director’s loan in a limited company BTL property purchase.
Does my solicitor need to be a panel member of the lender?
Lenders usually require the borrower’s solicitor to be on their panel. If your chosen solicitor is not registered with the lender’s panel, they will need to become registered. This will take extra time and delay the entire process. To save time, check in advance that the solicitor you are considering is a member of the lender’s panel.
What is independent legal advice?
Independent legal advice can be defined as impartial advice provided by an independent solicitor. The purpose of providing independent legal advice is to protect borrowers from signing any document before they understand the transaction’s risks. The borrowers’ independent advisor will have to sign a certificate confirming that they provided the relevant advice.
What is dual legal representation in a mortgage?
Dual legal representation is when the borrower and the lender use the same solicitor. It is common for both borrower and lender to receive joint legal advice from the same law firm where both parties’ interests are aligned and the transaction is straightforward.
However, not all lenders will accept joint representation. It is best to check whether your chosen lender is happy with joint representation or separate solicitors will have to be used by the borrower and lender.
We here at WIS Mortgages and Insurance Services can help our customers find a reputable and reliable firm of solicitors. Please contact us via our website. Live chat for more details.
“As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.”