Hampden Conveyancing Panel Information

The CML, together with Hampden and other members created a standard set of instructions where a conveyancer is acting for a lender such as Hampden alone in a residential conveyancing matter. These requirements are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be read in conjunction with Part I and II. The CML have published an example requirements letter to the borrower’s conveyancing solicitor 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 lawyer.

The Law Society of Scotland has suggested that solicitors should check their panel status with lenders prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the Hampden conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include moneysavingexpert.com

As is the case with the Law Society the CLC has initiated discussions with lenders and their representative bodies to see whether and how the risks that lenders wish to mitigate could be addressed through the regulatory framework rather than via ad hoc arrangements that can differ from lender to lender. It is likely that that the CLC have been in touch with lenders such as Hampden in recent years.

There are various requirements you need to follow 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 Hampden 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 Hampden’s mortgage offer are correct. If they are not, please let Hampden know as soon as possible as it will be necessary for Hampden to check with the valuer whether the valuation needs to be revised. Hampden conveyancing panel solicitors are not expected to assume the role of valuer. Hampden are simply trying to ensure that the valuer has valued the property based on correct information. (III) Hampden 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. Hampden recommend that, if we send a copy of a valuation report that Hampden 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 comprehensive survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Hampden 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 Hampden conveyancing panel

Your insurance brokers are your best port of call to address this question. The chances are that on the basis that you have not been removed for fraud or negligence reasons that there will be little or no impact. The main reason why a firm would be removed off of a lender panel is due to low volume of conveyancing cases although there may be a number of criteria for Hampden solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You need to contact Hampden to obtain standard documents. The CML Handbook contains an explicit question for banks to set out who to contact to obtain standard documents. Hampden in their Part 2’s state: It is likely that you will need to disclose your Hampden conveyancing panel reference.