Kensington Mortgage Conveyancing Panel Information

The CLC has begun dialogue 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 Kensington Mortgage as well as the CML.

Please tread carefully here as what you are proposing may not be acceptable to the mortgage company. It is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Many lenders make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender will appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancing firm. You also need to make the costs implications and potential for delay very clear to your client.

When a solicitor is acting for both Kensington Mortgage 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 Kensington Mortgage and it may well be prudent you to cease to act for the purchaser as well. You can not tell the Kensington Mortgage 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 Kensington Mortgage conveyancing panel status.

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

The best placed professionals to answer this question are your insurance brokers. 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 Kensington Mortgage solicitor panel membership. Please remember that it is always important that you complete your insurance forms accurately.

You should communicate with Kensington Mortgage to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an express section for lenders to enumerate who to contact to obtain standard documents. Kensington Mortgage in their Part 2’s state: Please remember to disclose the firm’s Kensington Mortgage conveyancing panel reference.