5 minute read
CONVEYANCING - What takes so long?
We talk to property investor and solicitor Tim Bishop to try and get a better understanding of the conveyancing process in 2023
By Alex Daley
Advertisement
‘What do they do and why does it take so damn long?’
If I asked you to guess who in the property ecosystem I was referring to when I asked that question I bet at least three quarters of you would say the same thing - solicitors.
Even if yours is great, the seller’s never is. It’s the property Gods punishing us for that sub-standard landlord repair you made, you know which one I’m talking about…
ON THE HOUSE Mag grabbed some time with the Buy To Let Group’s preferred partner Tim Bishop of Bonallack & Bishop Solicitors to try to figure out what actually happens during the conveyancing process, how to get the best out of your solicitor and see if they deserve the poor rep!
OTH: Let’s start with the basics, what’s the role of a solicitor?
A solicitor’s job is to make sure you buy what you want to buy… to make sure the rights you want to have are there and there are no nasties sitting there. That’s why, for example, searches happen, to check if there’s any planned development, or maybe if your neighbour’s got right of way across your garden, or whether what’s been built has planning permission… It’s an insurance policy.
OTH: OK, so a vital role yes, but why does it take so long?
However good your solicitor is, they can only go as quickly as the slowest part of the chain. All you need is one solicitor to go slowly. Whilst most are reasonably up to date, some are agonisingly slow. Conveyancing has become more complex recently too.
We’ve seen the average length of transaction change postCovid, very rough rule of thumb, pre-Covid perhaps three months, now we’re not seeing four, four and a half is more normal. Anything involving the government is horrendous at the moment, Land Registry for example, three to six months is normal. That has a knock-on effect, for those who are flipping or refinancing, it’s a real issue. There’s a way of doing it by expediting it. To expedite you need to have a good reason, sale or refinance.
(Something to factor in for those planning on following the BRRR strategy or contemplating flips.)
OTH: Why are personal guarantees so expensive?
The reason is simple, lenders want an insurance policy, they don’t want anyone turning around saying they didn’t know what they signed up to, so they’re basically getting the solicitors to guarantee you know what you’re signing up to. So if anything goes pear-shaped, you don’t have a go at them, you have a go at your solicitor. The issue there is solicitors have personal indemnity insurance and take on the risks.
OTH: How would you advise we best manage our solicitor? When should we chase, when shouldn’t we? And how can we speed things up?
Firstly, make sure your client ID is sorted out in advance, make sure you’ve got all the information they’ll need to hand in advance, if they ask you for things, get it to them as soon as possible.
As for choosing and managing them, you need to find someone you trust. Get references when deciding on a solicitor… Sometimes you need specialists, we have a specialist property team and only some of them act for investors because I know there’s a difference between investor and Mr and Mrs Jones buying 63 Bob Road. Your solicitors need to understand property investors. If you’re doing weird and wonderful strategies - lease options, purchase options, assisted sales that your average solicitor won’t have a clue about, [the wrong solicitor] can be a real pain. If you need a specialist, use a specialist.
If you feel they’re being slow and not keeping you in the loop, kick them. If you feel they’re being reasonable, try not to do it [nudge] unless you have to. If you do have a question, it’s best not to ring every time you have a thought, put a few together then give them a call. Just make sure you don’t call them on Friday afternoon! If you really want to annoy them, call them Friday afternoon.
Find someone who communicates in the style you want. If you want bullet point emails with updates, tell them that, see what they say… Treat them nicely, be polite.. Let’s be honest, solicitors are human. If they have a client you really like, you really trust and is alway nice to you, and they ask you ‘look can you do this a bit quicker this time?’ - they’ll likely make that bit of extra effort.
SOLICITING AN OPINION
So there you have it, we have a bit more of a glimpse into the wonderful (in fairness I don’t even think conveyancers would call it wonderful) world of property solicitors. We’re all still probably just as upset at the couple of hundred quid we spend on personal guarantees, albeit more understanding, we’ve confirmed our suspicions that unlike parents, solicitors have their favourites and we know when never to call them.
Do you have a strategy for coping with the current conveyancing climate?
Let us know by posting on the BTL Group or emailing the editor
julian@onthehousemag.co.uk
