LendInvest Conveyancing Panel Information

The Law Society of Scotland has advised that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the LendInvest conveyancing panel. The suggestion 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

We only know of two or three banks that operate a distinct conveyancing panel where the mortgage advance is over a certain level. You should nevertheless check directly with LendInvest. At one stage HSBC would only allow Sole practitioners to act for them where the mortgage was below £150,000. We are not sure if HSBC still operate such a condition. In your case it is best to check with LendInvest

We can't comment specifically on LendInvest. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the buyer client and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if he is in dispute with the lender she is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.

The emerging convention is that lenders are including an authority to disclose in loan application forms to counter this problem. Mortgage Express v Sawali, [2010] EWHC 3054 (Ch) indicates that such provisions are valid. Please click here for more information about that case.

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

The Law Society’s CQS accreditation is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of conveyancing solicitors. A number of mortgage companies now use the scheme as the starting point for Panel acceptance as is the case with Astra Mortgages.

You need to get in touch with LendInvest to obtain standard documents. The CML Handbook incorporates an individual inquiry for lenders to set out who to contact to obtain standard documents. LendInvest in their Part 2’s state: You will need to disclose your LendInvest solicitors panel reference.