Policy Change for Danske Bank Solicitor Panel
Change Date: 22/12/2023
Association: UK Finance
Jurisdiction: England and Wales
Index: v.2023 No.1274
Policy changes relevant to
Danske Bank
Solicitor Panel
| Updated |
|
22/12/2023 |
| 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? |
However, |
Yes, providing all flats in the block are subject to
long leases and the borrower is not the sole
freeholder. We require our security to be the leasehold flat to be occupied by the borrower, and for that security to have separate leasehold title that is UK Finance Lenders' Handbook compliant and meets our requirements. If the valuer has not referred to the title arrangements in the valuation report, or if a report has not been provided, please report the arrangements to us so that we can ensure that there is no adverse effect upon the valuation. You should also bring to our attention any interest the borrower has in any of the other flats in the building or adjacent building. Where the borrower owns a share of the freehold or superior title with others, a suitable form of trust deed or other suitable arrangement must be entered into prior to completion which contains provisions for the appropriate legal and beneficial interests in the freehold/superior title and leasehold titles to be transferred simultaneously if the lender exercises its power of sale. |
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