Aldermore Bank Conveyancing Panel Information

Whilst specific information is not available in respect of claims by Aldermore Bank the CML in their ‘Response by the Council of Mortgage Lenders to the Law Society of Scotland Consultation paper’ 2012 stated that In discussion with solicitors in Scotland who act for lenders in negligence matters they have highlighted two areas which are resulting in claims. These are

1. Failure to disclose back to back transactions – where the proprietor has owned the property for less than six months; and
2. The funding of the balance of the purchase price. Again, we would reiterate we have no evidence to suggest that these are the two main areas of concern for Aldermore Bank.

Aldermore Bank make no specific obligation to carry out any of the searches listed. The UK Finance Lenders’ Handbook simply states that ‘you must ensure that any other searches which may be appropriate to the particular property, taking into account its locality and other features are carried out’.

Please note that most ‘less usual searches’ are not optional as far as Aldermore Bank are concerned if they are ‘appropriate’. Most lenders will not require environmental searches (you should Check Part 2 of UK Finance Lenders’ Handbook to be sure), but you are obliged to explain risks and availability to the client.

Ground stability, Plansearch, flood searches as well as the searches are optional--but only to the extent that you have allowed the borrower client to make an informed choice. Regardless of whether there is a mortgage, if you have not advised the client that these (and other) searches are available and the risks they cover, then you will be liable if the client suffers loss through not conducting one. Does your ROT and Ts and Cs cover this situation?

A leading search provider lists over 65 conveyancing searches. Do you know what they are and when they may be relevant? If you are unsure as to which searches are appropriate based on location, call your search provider or call one of the leading search companies.

One might ordinarily expect Aldermore Bank via their Part 2 conditions to address this issue, but the Handbook is silent on deadlines to send deeds. You need to look at the Terms of Aldermore Bank’s Conveyancing Panel Appointment that you previously signed. For a number of banks, these Terms have a clause such as this one: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period’. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds). It is imperative to keep Aldermore Bank updated. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

Most lenders do not operate a specific buy-to-let conveyancing panel, but a few do. We do not know what the position is with Aldermore Bank as of today. If you're about to receive instructions from a client on a buy-to-let purchase with a mortgage from Aldermore Bank, we suggest that you call Aldermore Bank to check the position.