Lloyds Conveyancing Panel Information

The Law Society of Scotland has advised that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the Lloyds conveyancing panel. The suggestion arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include mumsnet.com

We only know of a couple of banks that operate a distinct conveyancing panel where the mortgage advance is over a certain amount. You should nevertheless check directly with Lloyds. At one stage HSBC would only allow Sole practitioners to act for them where the mortgage was below £150,000. We are not sure if HSBC still operate such a condition. In your case it is best to check with Lloyds

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

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 explicit question for lenders to set out who to contact to obtain standard documents. Lloyds in their Part 2’s state: Always remember to quote your Lloyds solicitors panel reference.