That's a lot of fees! Why do we need a solicitor when we already own the land? (Self-build mortgage application)

[Great_scot_selfbuild]

So,...

• We already own the land (have done for a few years), land registry details are updated and correct, we have the title deeds.
• We gained planning permission during our ownership.
• We're applying for a self-build mortgage and have been told we need a solicitor for the conveyancing.

I'm just struggling to understand why we need a solicitor and what they have to do for us to get a self-build mortgage. Even if we have to accept that conveyancing is required, the quote we've received (see extract attached) includes a lot of fees that are nothing to do with the conveyancing but rather land registry activity that we've already done and already have the documents for. A land registry title and plan only cost £3 each.

 

Grateful for any light that fellow build-hubbers can shed. TIA.

 

David

[Oz07]

The solicitor is to benefit the mortgage company and satisfy their requirements not for your benefit. 

[JohnMo]

Under a mortgage, you will be one the keeper of the land and property not really the owner, the mortgage own it in reality, don't pay your mortgage the mortgage company evicts you. Not until you become mortgage free, that you really own it.

[Alan Ambrose]

These are fees from the mortgage company's solicitors? In conveyancing terms, they're not that high nowadays. These'll probably be in-house guys.

 

The biggest element is the search pack and they're looking for things that might impact your build and therefore reduce their security - covenants etc. To that extent, the searches are in your interest even though you may already be sure there's no problem there. Computer says they have to check.

 

I don't think you have any option apart from from talk to a different mortgage provider, and the competitor's fees probably won't be any different.

 

Like the mafia, just a cost of doing business nowadays ..

 

 

 

[ToughButterCup]

1 hour ago, Great_scot_selfbuild said:

...

struggling to understand why we need a solicitor

...

 

You don't. They do.

[Dave Jones]

4 hours ago, JohnMo said:

Under a mortgage, you will be one the keeper of the land and property not really the owner, the mortgage own it in reality, don't pay your mortgage the mortgage company evicts you. Not until you become mortgage free, that you really own it.

 

not true actually. If it were the case the bank would be on the hook for all the liability and you would be a tenant. You are allways the owner, the bank has a legal charge is all.

[joe90]

Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. The process ensures that the buyer acquires a valid title to the property and that the transfer of ownership is legally binding.

[TommoUK]

..the bank interest will be noted on your title at the land registry in the 'charges register'. Effectively, this means you can't sell without the banks permission.  They will approach the loan advance in much the same way as they would if they were buying the property themselves, as ultimately if you default they could repossess. They therefore wantbto make sure they have good title and an asset they can sell to recover waht theyve lent.

[ChrisInKent]

Have just paid £2k in the south east for exactly this - the solicitor acts to assure the mortgage company (on their behalf) but the costs fall to the self builder. New searches, registered the mortgage, posted the mortgage deed to us, forwarded them onto the mortgage provider and answered 3 emails. Nice work if you can get it.