Magellan Homeloans Conveyancing Panel Information

The requirements to join the Magellan Homeloans conveyancing panel is likely to be fairly detailed and is unlikely to include signing up to LENDERmonitor alerts.

We can't comment specifically on Magellan Homeloans. 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 she 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.

Most lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Magellan Homeloans as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Magellan Homeloans we suggest that you call Magellan Homeloans to check the position.

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

In the circumstances please explain on the application what action you have taken to discover the reasons behind cancellation of your Magellan Homeloans panel status. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender advising you as to their reasons?

You should contact Magellan Homeloans to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an individual question for banks to enumerate who to contact to obtain standard documents. Magellan Homeloans in their Part 2’s state: You will need to disclose the firm’s Magellan Homeloans conveyancing panel reference.