Lloyds Conveyancing Panel Information

Paragraph 16.2.1 of Part 1 of the Handbook applicable to a solicitor on the Lloyds conveyancing panel reads ‘Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel but if you are instructed the appropriate provisions of this Handbook will apply’.

There are various requirements you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. First, 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 Lloyds immediately. Second, 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 Lloyds’s mortgage offer are correct. If they are not, please let Lloyds know as soon as possible as it will be necessary for Lloyds to check with the valuer whether the valuation needs to be revised. Lloyds conveyancing panel solicitors are not expected to assume the role of valuer. Lloyds are simply trying to ensure that the valuer has valued the property based on correct information. Thirdly, Lloyds 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. Lloyds recommend that, if we send a copy of a valuation report that Lloyds 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 structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Lloyds 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 Lloyds conveyancing panel

Your insurance brokers are your best port of call to address this question. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for Lloyds solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You would be advised to get in touch with Lloyds to obtain standard documents. The CML Handbook has an express section for lenders to reveal who to contact to obtain standard documents. Lloyds in their Part 2’s state: Don’t forget to quote your Lloyds conveyancing panel reference.