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Posts Tagged ‘Online Conveyancing’


What is The NewBuy Scheme and will it work? | Sunday, April 1st, 2012

There has been a lot of talk amongst local and online conveyancing firms as well as the wider public, about the governments latest attempts to kick-start the struggling housing market, the NewBuy scheme. Even with lower purchase costs thanks to the growth of online conveyancing, the credit crunch has hit the housing market hard and with wide-spread redundancies and harder economic times, the UK has seen a huge increase in the number of people defaulting on the mortgage. The banks natural reaction to this was to stop lending and the online conveyancing companies that only recently set-up found themselves without clients, with banks often requiring a deposit of as much as 30-40%.

 

As any well informed online conveyancing solicitor will tell you, the average house price in the UK is over £200,000 so the banks high deposit requirements meant that even with the cheap online conveyancing services making it easier than ever, only those with large amounts of available capital were able to get a mortgage. This has contributed to online conveyancing solicitors driving down costs, knowing that even those who would normally be keen to use a local firm could be tempted to use their online conveyancing service in such difficult times. But with hundreds of new build houses lying vacant and construction companies halting projects (and subsequently laying off staff) until the existing properties are sold, the government have stepped in to try and encourage the banks to start lending more leniently.

 

You may have seen in the news or through online conveyancing sites, the governments solution to this problem is the NewBuy scheme. The NewBuy scheme involves a loan guarantee to encourage the major banks to start offering mortgages again on new build properties, with a much lower deposit level – in this case as little as 5%. Under the rules of the new scheme, property developers who have these empty properties will pay the lender 3.5% of the purchase price of the property whilst the government will put up a further 5.5% as a guarantee – but will only pay out this amount should there be a further drop in house prices. This means the banks  they can now afford to give out much larger mortgages with a much lower level of risk, as they can rest assured that should the property need to be repossessed, they would not lose money.

 

Critics have suggested that in reality this isn’t a scheme to help potential homeowners but rather the developers who have so many empty properties. Whichever way you look at it, this hasn’t helped the online conveyancing solicitors who had launched their online conveyancing platforms shortly before the recession, as many developers will have their own local law firm deal with the process rather than allowing homebuyers to choose their own local or online conveyancing solicitors. These online conveyancing firms have however seen improved figures, with many customers turning against the traditional solicitors and choosing cheaper online conveyancing solicitors. As online conveyancing firms are generally cheaper than local ones and the economic crisis hitting homebuyers hard, online conveyancing solicitors have become a popular alternative.

Do It Yourself Conveyancing | Saturday, July 17th, 2010

If you have managed to find a buyer (or managed to find a property you wish to buy) you are going to have to go through the conveyancing motions in order to finalise the sale. Conveyancing is a complicated and time consuming process. If you opt to do it yourself then you will have to arm yourself with the knowledge to do it properly. You will also have to deal with many other people (including the buyer or seller – or their solicitor) to ensure that the process is transparent and done to the correct legal standard. You may also have to deal with a mortgage broker, lender or bank in order to successfully complete the paperwork. A lot of the time anyone who is responsible for lending money will not deal with someone who wants to do their own conveyancing.

The main advantage when doing your own conveyancing comes from the amount of money you can save. Although it may seem like a relatively small amount in the grand scheme of things; it is money that is better in your pocket than theirs. You also have an element of control over the sale – more so than you would otherwise. You are able to get the information to the parties that require it quicker than waiting. However, this in itself can be a draw back in that you do not get any guidance regarding when to do what. Conveyancing is fickle territory. As previously stated, a bank may be unwilling to deal with someone who is not covered by professional liability insurance if any problems arise during the conveyancing process. Although you can hire someone to represent you in order to approach lenders for you, it might be cheaper in general to have someone help you through the whole process.

Whilst you do not have to be a licensed solicitor in order to successfully undertake the conveyancing process for any property you wish to buy or sell; the cost of your time may be quite high if you wish to do it yourself. It may end up cheaper hiring someone to do it for you. If you factor in the value of what your time is actually worth – it can end up costing you more in the long run. Although, that is not to say that it is a bad idea to do it yourself. It is worth approaching a professional in order to find out what it is likely to cost before attempting to do it yourself.

Conveyancing Online | Friday, July 16th, 2010

If you are looking for a method to get any conveyancing work done efficiently and expertly without the need to involve yourself or others in the process unnecessarily then electronic conveyancing may be the solution you are looking for. Electronic conveyancing (or online conveyancing) is a relatively new trend offered by firms to help speed up the process and ensure that everything is done to a schedule. It also reduces the costs associated with conveyancing because there are less overheads involved for the conveyancing firm. It also allows the client to submit any paperwork electronically or via mail from the comfort of their own home (or a quick trip to the post box). Financial institutions look upon this method favourably as well. Although, you may still have to attend an interview at the bank in order to get mortgage approval.

It allows you to fill in the forms required and submit them electronically. A lot of the time this can actually save you time when trying to get a mortgage for the property which you wish to purchase. In the event you want to transfer ownership of an equitable property or equity then you are also able to utilise online conveyancing services. Rather than driving from place to place in order to collect forms and submit them, anything that you are required to sign can be sent to you via post and then returned via post. Because the process is more about collating information there is a minimum of forms that will be required to be returned with a signature. It is a time saving device and it call also save you a lot of hassle in the long term as it is just a matter of submitting what you need to submit and waiting.

There are plenty of conveyancing firms that now offer this method. They are generally offered on a secure connection with the server so you do not have to worry about your details falling into the wrong hands. It is in your best interest to give it a try as it can expedite the process somewhat. However, you will still be waiting as the process is generally drawn out and reliant on multiple firms and individuals in order to push it in the right direction. Of course you still have the option to follow a traditional route in order to fulfil your conveyancing requirements. Electronic conveyancing is just another option available to the client.