Paragon Mortgages Ltd Conveyancing Panel Information

In the same way that there is a unique Paragon Mortgages Ltd conveyancing panel most building societies, operate a conveyancing panel for solicitors and other conveyancers that the lender will instruct. Terms and Conditions and criteria for inclusion on a building society conveyancing panel vary from lender-to-lender. Having CQS accreditation may be a requirement. Institutional lenders, such as a building society, is a client and is entitled to instruct the solicitor or conveyancer of its choosing (who, in turn, is free to accept or refuse instructions). Therefore, if lender and borrower cannot agree which solicitor or conveyancer should represent them jointly, they would usually proceed on a separate representation basis. The BSA have not published the equivalent of the UK Finance Lenders’ Handbook Part 3s.

During 2013, 69 sections of the UK Finance Lenders’ Handbook P2 were changed by Paragon Mortgages Ltd. Some changes are more important than others but as a firm on the Paragon Mortgages Ltd conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

There are various requirements are to followed if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (a) You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell Paragon Mortgages Ltd immediately. (II) You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in Paragon Mortgages Ltd’s mortgage offer are correct. If they are not, please let Paragon Mortgages Ltd know as soon as possible as it will be necessary for Paragon Mortgages Ltd to check with the valuer whether the valuation needs to be revised. Paragon Mortgages Ltd conveyancing panel solicitors are not expected to assume the role of valuer. Paragon Mortgages Ltd are simply trying to ensure that the valuer has valued the property based on correct information. Thirdly, Paragon Mortgages Ltd recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. Paragon Mortgages Ltd recommend that, if we send a copy of a valuation report that Paragon Mortgages Ltd have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers survey or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Paragon Mortgages Ltd or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from the Paragon Mortgages Ltd conveyancing panel

On the basis that your firm in is on the Paragon Mortgages Ltd conveyancing panel and you are acting for them in relation to a leasehold property, you must report to them if it becomes apparent that the landlord is either absent or insolvent. If Paragon Mortgages Ltd are to lend, they may require indemnity insurance. In any event,you will need to check Paragon Mortgages Ltd’s specific requirements. Notwithstanding whether Paragon Mortgages Ltd will lend in such circumstances you still need to advise the borrower (unless you are acting for Paragon Mortgages Ltd alone) as to the risks of buying a property with an insolvent or absentee landlord.

You should supply details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not adversely impact your application but gives the Law Society viability as to what has occured.

You would be advised to get in touch with Paragon Mortgages Ltd to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an express inquiry for banks to enumerate who to contact to obtain standard documents. Paragon Mortgages Ltd in their Part 2’s state: It is likely that you will need to quote the firm’s Paragon Mortgages Ltd solicitors panel number.