Enact have found a new way to screen new leasehold instructions using AI, in order to flag and resolve issues for their clients, reducing abortive costs and non-billable hours.
The challenge of leasehold conveyancing
Enact are specialists in conveyancing. The firm handles a quarter of all remortgage transactions in the UK. Enact also has a conveyancing operation that helps people up and down the country to buy and sell property, including a substantial number of flats and other leasehold properties.
Charlotte Local, Legal Director at Enact, sums up one of the challenges of leasehold conveyancing, “our data shows that 6% of leasehold transactions abort early in the transaction as a result of a problematic lease”. For example, there could be defects in the lease which need to be resolved, terms of a lease which might not meet the requirements of the client’s mortgage lender, or simply a mismatch between what the client thinks he or she is buying and what the vendor is purporting to sell.
The challenge is rooting out those cases as early as possible. “Whilst no client relishes hearing of a potential dealbreaker, the feedback we receive centres on the value of an early discussion before they have become more emotionally and financially invested” continues Charlotte.
Surfacing these issues at the outset is also in the interest of the firm that wants to ensure it’s fee-earners time is not spent on non-billable work in the event the transaction does not proceed.
Enact: Thinking outside the box using AI
As the country’s largest remortgage conveyancer, automation is part of Enact’s DNA, and so naturally, Enact started to investigate the potential to use Artificial Intelligence (AI) to solve the problem. “We wanted an AI solution that identified the common issues we know cause a problem, with no requirement for a conveyancer to review the lease”, explains Charlotte.
In May 2023 Enact started working with LegalTech company Orbital Witness. Orbital Witness began its journey in the commercial property arena with some notable customers including the likes of Clifford Chance, Addleshaw Goddard, Eversheds and Dentons, before arriving on the residential conveyancing scene this year with a new AI product designed to help law firms check and report on leasehold property more efficiently.
The product uses AI to automatically check the lease, identify possible defects and red flag non-compliance with mortgage lender requirements.
After testing and evaluating the Orbital Witness proposition Charlotte realised they could reconfigure their internal workflows to take full advantage of the technology.
“Every lease received by us goes through an initial screening or triage process within hours of receipt meaning that we are able to advise potential buyers on an issue the same day we are instructed”
The impact of reimagining workflows
By implementing AI to screen leasehold instructions ahead of the full title check, Enact have been able to deliver a more proactive service to their clients and cut down on non-billable hours.
“The Orbital Witness solution isn’t just weeding out the complete non-starters; in a further 21% of cases it has provided us with an early indication of an issue requiring rectification. Whilst this does not replace the subsequent full title check, what it does mean is that the chance of a fee-earner’s time being spent on a non-proceedable transaction has been reduced.”
This article was submitted to be published by Orbital Witness as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
