Magellan Homeloans Conveyancing Panel Information

The Council of Mortgage Lenders, along with Magellan Homeloans and other members developed a standard set of requirements where a conveyancer is representing a lender such as Magellan Homeloans alone in a residential conveyancing transaction. These legal instructions are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be followed together 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 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 Magellan Homeloans 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 mumsnet.com

The Council of Licensed Conveyancers has entered 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. We expect that that the CLC have been in touch with lenders such as Magellan Homeloans as well as the BSA.

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

In the circumstances please clarify on the application what steps you have taken to discover the reasons behind cancellation of your Magellan Homeloans panel membership. In particular please provide details if you have received communications from the lender. E.G. before revocation of your panel membership did you receive any letters or calls from the lender informing you as to why they reached this decision?

You would be advised to get in touch with Magellan Homeloans to obtain standard documents. The The Council of Mortgage Lenders Handbook includes a specific section for lenders to enumerate who to contact to obtain standard documents. Magellan Homeloans in their Part 2’s state: It helps to disclose your Magellan Homeloans solicitors panel number.