Change Date : 25/02/2014
Association: UK Finance
Jurisdiction: England and Wales
Index: v.2014 No.110


Policy changes relevant to
Principality Building Society Solicitor Panel

5.8.1- Does the lender accept security which comprises a building converted into not more than four flats where the borrower occupies one of those flats and the borrower or another flat owner also owns the freehold of the building and the other flats are subject to long leases? Provided there are separate long leases, including a lease for the flat the borrower is to occupy AND the freehold is to be owned by a management company (as opposed to our borrower or any other flat owner) the security will be acceptable.
Yes. If Borrower also owns the freehold we will require a charge over that title also.
Yes - Subject to the conveyancer confirming that each lease contains adequate covenants regarding maintenance of the building the flat is part of.

You should also bring
to our attention any interest the borrower has in any other flats in the building.
5.14.1- What minimum unexpired lease term does the lender accept? You should notify The Society where the unexpired term of the lease is 60 years or less You should notify The Society where the unexpired term of the lease is 70 years or less
5.20.3- Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they? Yes; we require you to notify us in all cases where leases of roof space for solar PV panels are present in order to obtain our consent prior to exchange or completion. If the property is subject to a registered lease of roof space for solar PV panels we will require you to confirm that the lease contains a valid mortgagee break right, which is capable of exercise by us in the event of repossession. You must not submit your Certificate of Title until you have issued this confirmation to us. **** Yes – providing you obtain or confirm the following:
1. The Lease
contains a valid mortgagee break right which is exercisable after no more than 2 months’ notice. The lease must also provide that the cost of removing the equipment and making good any damage to the property is the responsibility of the solar PV provider.
2. The Lease is no longer than 30 years
3. The Lease excludes sections 24 to 28 of the Landlord and Tenant Act 1954.
4. Where the property is leasehold, the written consent of the landlord authorising the installation of the equipment.
5. Building Insurance confirmation that it has been notified of the installation of the equipment.

You
must not submit your Certificate of Title to us unless you have issued confirmation of the above to us.

Post completion requests are subject to different criteria and should be referred to the Mortgage Admin Team at the address detailed in 1.11a