Aviva Equity Release Conveyancing Panel Information

The Council of Mortgage Lender requirements of Aviva Equity Release are silent on this. Most lenders address the issue of file retention via their Terms of panel appointment where they generally provide that for evidential purposes, the firm must keep the file for at least of 6 years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that it is the practice of some fraudsters to demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is therefore important to retain these documents to protect Aviva Equity Release’s interest. To be absolutely sure of Aviva Equity Release requirements in this regard please check the Terms and Conditions of Aviva Equity Release’s conveyancing panel membership.

In operating open conveyancing panels, lenders such as Aviva Equity Release face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Aviva Equity Release and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

You will be aware of the trend in recent years for lenders such as Aviva Equity Release to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the Aviva Equity Release panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Aviva Equity Release have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Aviva Equity Release’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for Aviva Equity Release. You will no doubt be required to undertake directly to Aviva Equity Release’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the Aviva Equity Release conveyancing panel.

Given that your firm in is on the Aviva Equity Release conveyancing panel and you are instructed by 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 Aviva Equity Release are to lend, they may require indemnity insurance. In any event,you will need to check Aviva Equity Release’s specific requirements. Notwithstanding whether Aviva Equity Release will lend in such circumstances you still need to advise the borrower (unless you are acting for Aviva Equity Release alone) as to the risks of buying a property with an insolvent or absentee landlord.

In the circumstances please clarify on the form what steps you have taken to discover the reasons behind cancellation of your Aviva Equity Release panel status. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender advising you as to their reasons?

You should contact Aviva Equity Release to obtain standard documents. The CML Handbook has an individual section for lenders to cite who to contact to obtain standard documents. Aviva Equity Release in their Part 2’s state: You will need to disclose the firm’s Aviva Equity Release conveyancing panel number.