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Habito Solicitor Panel: Recently Asked Questions
Is there a standard appeals process to prevent solicitors from being unfairly removed them from lender conveyancing panels?
There are thousands of firms across the UK who feel aggrieved claiming that they have been removed from lenders’ panels without an explanation or a good
reason. It is highly unlikely, given that lenders have distanced
themselves from creating a standardised appeals process for
brokers, that an appeals process will be introduced for
lawyers. Commenting on the call by brokers to have a standardised
process the CML said’ “While we understand that some lenders do have
an appeals process, it would not be appropriate for a trade body such
as the CML to seek to be prescriptive about such a process.” Some
lenders do of course set out an appeals policy. The Law Society does
have information on it’s site that may be of assistance. If you would
like to talk to one of our compliance experts about our Lender Panel
Protection Service please contact us.
Being on the Habito conveyancing panel how long am I expected to archive the complete conveyancing file?
The Council of Mortgage Lender requirements of
Habito are silent on this. Most mortgage companies deal with the issue of file retention via their Terms and Conditions where they generally provide that for evidential purposes, the firm must keep the file for a minimum six years from the date of the mortgage. Data imagining is normally
suitable compliance with this requirement. Many lenders point out in
that it is the practice of some fraudsters to demand the conveyancing
file on completion in order to destroy evidence that may later be
used against them. It is therefore important to retain these
documents to protect Habito’s interest. To be
absolutely sure of Habito requirements in this regard
please check the Terms and Conditions of Habito’s
conveyancing panel membership.
A recent SRA survey reveals that 76% of
solicitors have been removed from a lender conveyancing panel. Habito and other lenders have restricted their panel over
the years. Why?
In operating open conveyancing panels, lenders such as Habito
face a number of fraud and negligence risks. While
there is no authoritative source of data on lender exposure to
solicitor–led mortgage fraud, anecdotal evidence from lenders
indicates exposure on individual cases are often in the millions of
pounds. The National Fraud Authority estimates that £1bn per year is
lost in mortgage -related frauds in total, which is seen as a
conservative estimate.
These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.
Habito and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.
What type of firms do building societies allow to be on their Conveyancing Panels?
In the same way that there is a unique Habito
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.
In carrying out leasehold title investigations do
Habito panel solicitors have to examine whether there is an absentee freeholder?
Assuming that your practice in is on the
Habito 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
Habito are to lend, they may require indemnity insurance. In any event,you will need to check
Habito’s specific requirements. Notwithstanding whether
Habito will lend in such circumstances you still need to advise the borrower (unless you are acting for
Habito alone) as to the risks of buying a property with an insolvent or absentee landlord.
Will Conveyancing Quality Scheme acceptance secure my firm’s acceptance on to lenders conveyancing panels?
CQS membership is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. A number of mortgage companies now use the scheme as the starting point for Panel acceptance such as Astra Mortgages.
My firm is listed on the
Habito
conveyancing panel and all set to complete a remortgage within the next few weeks. I dont have a Mortgage Deed for the client to sign.
Who do I contact at Habito to request substitute deeds?
You need to communicate with Habito
to obtain standard documents. The CML Handbook has an express question for banks to cite who to contact to obtain standard documents.
Habito in their Part 2’s state:
It helps to quote your Habito solicitors panel reference.
Find a Lawyer on the Habito Conveyancing Panel
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Average number of days to register title including a charge in favour of Habito
This information relates to purchase only and not remortgages.
| Year | Days* |
|---|---|
| 2025 | [no data] |
| 2024 | [no data] |
| 2023 | [no data] |
| 2022 | [no data] |
| 2021 | [no data] |
| 2020 | [no data] |
* Data aggregated from sources including COMPLETIONmonitor
Other related topics:
- CQS policy templates and procedures for accredited Habito Firms
- Draft Report on Title precedent for Habito borrowers
- Draft Anti Money Laundering PolicyTemplate for Habito panel firms to consider
- Dealing with Lender Policy Template panel for CQS accredited firms on the Habito lender panel
- Buy-to-Let help for Habito
- Consent-to-Let help for Habito
- Contractor Mortgages with Habito
