Cynergy Bank Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook relevant to a solicitor on the Cynergy Bank 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’.

The Scottish Law Society has advised that solicitors should check their panel status with lenders prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the Cynergy Bank conveyancing panel. The recommendation 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

As is the case with the Law Society the Council of Licensed Conveyancers has initiated discussions with banks and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. We expect that that the CLC have been in touch with lenders such as Cynergy Bank in recent years.

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

We would recommend that you provide 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 application but gives the CQS team a complete picture of what has gone on.

You need to contact Cynergy Bank to obtain standard documents. The CML Handbook incorporates an express section for lenders to set out who to contact to obtain standard documents. Cynergy Bank in their Part 2’s state: Always remember to quote your Cynergy Bank conveyancing panel number.