If you’ve bought or sold a property, chances are you have dealt with a conveyancer at some point. Conveyancing is the legal transfer of property from the current owner to a new owner. Conveyancing solicitors act on behalf of both the buyer and the lender.
Conveyancing solicitors will:
- Organise searches for the property and check the house titles
- Check the mortgage offer and deal with exceptional conditions
- Provide essential information and documents
- Arrange dates for exchange of contracts and completion
- Submit tax returns and transfer funds for the stamp duty and other essential tasks.
Not all buyers may want to purchase properties in their capacity as a natural person and may prefer to buy a property via a limited company.
What Further Documents are Required During the Conveyancing Process When Buying Through a Limited Company?
The conveyancer will need to make checks on the limited company to ascertain whether or not it is legally entitled to hold property, including:
- Proof of identity for the company director(s);
- Company Articles and Powers, including the company’s Memorandum and Articles of Association;
- A company search to ensure there are no issues such as pre-existing charges which may affect the lender’s decision;
- Annual returns,
- Proof of independent legal advice, as required by many lenders. This is to ensure that company directors understand the legal implication of guaranteeing mortgages.