Birmingham Bank Conveyancing Panel Information

The Council of Mortgage Lenders, together with Birmingham Bank and other lenders created a standard set of requirements where a solicitor is representing a lender such as Birmingham Bank alone in a residential conveyancing transaction. These requirements are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be followed together with Parts 1 & 2. The CML have published an example requirements letter to the borrower’s lawyer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel solicitor.

Please tread carefully here as what you are intending may not be acceptable to the lender. It is possible that you (as a non-panel firm) or the mortgage applicant are not at liberty instruct a panel firm of your choice. Many lenders make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender must appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancer. You also need to make the costs implications and potential for delay very clear to your client.

When a solicitor is acting for both Birmingham Bank and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Birmingham Bank and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Birmingham Bank the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Birmingham Bank conveyancing panel status.

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

CQS membership is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. Some mortgage companies now use CQS as the starting point for Panel membership as is the case with Santander.

You need to get in touch with Birmingham Bank to obtain standard documents. The The Council of Mortgage Lenders Handbook has an individual question for banks to enumerate who to contact to obtain standard documents. Birmingham Bank in their Part 2’s state: Always remember to disclose the firm’s Birmingham Bank solicitors panel reference.