Cynergy Bank Conveyancing Panel Information

During 2013, 21 sections of the UK Finance Lenders’ Handbook P2 were changed by Cynergy Bank. Some changes are more important than others but as a firm on the Cynergy Bank conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

When a solicitor is acting for both Cynergy Bank and borrower there is potential for conflicts to arise. You owe duties to both clients. All information received by you from your client is confidential and cannot be disclosed without the client’s consent. In the situation you find yourself in if the purchaser will not consent to the information being passed on to the lender the solicitor must cease to act for the Cynergy Bank and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Cynergy Bank the reason for termination of the retainer over and above the fact that a conflict has arisen. The fact that you can no longer act should alert even the most somnambulistic of lenders that something is wrong with the borrower and/or purchase. The fact that you have disinstructed yourself should not affect your Cynergy Bank conveyancing panel status.

You have a number of obligations in this regard which are to followed if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (I) 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. Thirdly, 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 survey 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

You should 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 application but gives the Law Society viability as to what has happened.

You should communicate with Cynergy Bank to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an express section for lenders to set out who to contact to obtain standard documents. Cynergy Bank in their Part 2’s state: Don’t forget to disclose your Cynergy Bank conveyancing panel number.