Cynergy Bank Conveyancing Panel Information

We can't comment specifically on Cynergy Bank. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the buyer client and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if he is in arrears with the lender he is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.

The emerging convention is that lenders are including an authority to disclose in loan application forms to counter this problem. Mortgage Express v Sawali, [2010] EWHC 3054 (Ch) indicates that such provisions are valid. Please click here for more information about that case.

There are various requirements are to followed 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 Cynergy Bank 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 Cynergy Bank’s mortgage offer are correct. If they are not, please let Cynergy Bank know as soon as possible as it will be necessary for Cynergy Bank to check with the valuer whether the valuation needs to be revised. Cynergy Bank conveyancing panel solicitors are not expected to assume the role of valuer. Cynergy Bank are simply trying to ensure that the valuer has valued the property based on correct information. (c) Cynergy Bank 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. Cynergy Bank recommend that, if we send a copy of a valuation report that Cynergy Bank 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 Cynergy Bank 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 Cynergy Bank conveyancing panel

Given that your practice in is on the Cynergy Bank conveyancing panel and you are acting for 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.

With mortgage companies and solicitors working so closely with one another it is surprising that there has not been greater demand for the introduction of a bit of transparency regarding not just the figures for the Cynergy Bank conveyancing panel but for all bank panels

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 viability as to what has gone on.

You should communicate with Cynergy Bank to obtain standard documents. The CML Handbook incorporates an express inquiry for banks to reveal who to contact to obtain standard documents. Cynergy Bank in their Part 2’s state: It helps to disclose your Cynergy Bank conveyancing panel number.