Cynergy Bank Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook applicable 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 majority of lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Cynergy Bank as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Cynergy Bank we suggest that you call Cynergy Bank to check the position.

Cynergy Bank approved panel lawyers are bound by the UK Finance Lenders’ Handbook instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Cynergy Bank require, the deed of covenant on their behalf. You will need to check Cynergy Bank CML Part 2 conditions to see if Cynergy Bank have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Cynergy Bank conveyancing panel

On the basis that your firm in is on the Cynergy Bank 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 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 freeholder.

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 adversely impact your firm’s application but gives the CQS team a complete picture of what has happened.

You need to contact Cynergy Bank to obtain standard documents. The CML Handbook contains an individual section for lenders to establish who to contact to obtain standard documents. Cynergy Bank in their Part 2’s state: Please remember to disclose your Cynergy Bank solicitors panel reference.