Birmingham Midshires Conveyancing Panel Information

During 2013, 50 sections of the UK Finance Lenders’ Handbook P2 were changed by Birmingham Midshires. Some changes are more important than others but as a firm on the Birmingham Midshires 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.

When a solicitor is acting for both Birmingham Midshires 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 Midshires and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Birmingham Midshires 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 Midshires conveyancing panel status.

You have a number of obligations in this regard which you need to follow 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 Birmingham Midshires 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 Birmingham Midshires’s mortgage offer are correct. If they are not, please let Birmingham Midshires know as soon as possible as it will be necessary for Birmingham Midshires to check with the valuer whether the valuation needs to be revised. Birmingham Midshires conveyancing panel solicitors are not expected to assume the role of valuer. Birmingham Midshires are simply trying to ensure that the valuer has valued the property based on correct information. (III) Birmingham Midshires 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. Birmingham Midshires recommend that, if we send a copy of a valuation report that Birmingham Midshires 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 report or comprehensive survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Birmingham Midshires 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 Birmingham Midshires conveyancing panel

We would recommend that you 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 negatively affect your firm’s application but gives the CQS team a complete picture of what has gone on.

You would be advised to get in touch with Birmingham Midshires to obtain standard documents. The The Council of Mortgage Lenders Handbook has a specific inquiry for banks to establish who to contact to obtain standard documents. Birmingham Midshires in their Part 2’s state: Always remember to disclose the firm’s Birmingham Midshires conveyancing panel reference.