Foundation Home loans Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook applicable to a solicitor on the Foundation Home loans 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 Council of Mortgage Lenders, together with Foundation Home loans and other stakeholders developed a standard set of requirements where a conveyancer is acting for a lender such as Foundation Home loans alone in a residential conveyancing transaction. These legal instructions are contained at Part III of the UK Finance Lenders’ Handbook and are to be read in conjunction with Sections One and Two. The CML have published an example requirements letter to the borrower’s conveyancer for use by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel conveyancer.

In the same way that there is a unique Foundation Home loans conveyancing panel most building societies, operate a conveyancing panel for solicitors and other conveyancers that the lender will instruct. Terms and Conditions and criteria for inclusion on a building society conveyancing panel vary from lender-to-lender. Having CQS accreditation may be a requirement. Institutional lenders, such as a building society, is a client and is entitled to instruct the solicitor or conveyancer of its choosing (who, in turn, is free to accept or refuse instructions). Therefore, if lender and borrower cannot agree which solicitor or conveyancer should represent them jointly, they would usually proceed on a separate representation basis. The BSA have not published the equivalent of the UK Finance Lenders’ Handbook Part 3s.

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

The Law Society’s CQS accreditation gives no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of conveyancing solicitors. A number of Lenders now use CQS as the starting point for Panel membership as is the case with HSBC.

You should contact Foundation Home loans to obtain standard documents. The CML Handbook includes a specific question for banks to enumerate who to contact to obtain standard documents. Foundation Home loans in their Part 2’s state: Don’t forget to quote the firm’s Foundation Home loans solicitors panel number.