Molo Finance Buy to Let Conveyancing Panel Information

As is the case with the Law Society the CLC has initiated 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 Molo Finance Buy to Let as well as the BSA.

You will be aware of the trend in recent years for lenders such as Molo Finance Buy to Let to take a much more pro-active approach in relation to the management and make up of their conveyancer panels. The knock on effect of this is that it is more likely that there will be a higher number of cases where a conveyancer is not on the Molo Finance Buy to Let panel. The situation that you find yourself in is where your client’s purchaser has his/her own lawyer and Molo Finance Buy to Let have appointed a separate lawyer to act on their behalf where the new CML Part 3 requirements apply. Section 11.1 of the UK Finance Lenders’ Handbook Part 3 requires Molo Finance Buy to Let’s panel solicitor to ‘ ...transfer the mortgage advance directly to the Seller’s conveyancer. The Seller’s conveyancer must be required to hold the mortgage advance on the terms of the required undertaking. The example borrower’s conveyancer’s undertaking letter includes a specific example of the seller’s undertaking’. You should expect to be advised to received the mortgage advance directly from the conveyancing solicitors for Molo Finance Buy to Let. You will no doubt be required to undertake directly to Molo Finance Buy to Let’s solicitors to discharge any charges secured on the property and to send directly to them the executed transfer and any other documents required to enable us to effect registration. Please remember to carefully consider undertakings in accordance with your firm’s protocol and record them in your undertakings logg. Please remember that as well as this breach of this undertaking having regulatory and compliance implications it’s breach could also result in your firm being removed off the Molo Finance Buy to Let conveyancing panel.

Molo Finance Buy to Let approved solicitors have to comply with the Part II instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Molo Finance Buy to Let require, the deed of covenant on their behalf. You will need to check Molo Finance Buy to Let CML Part 2 conditions to see if Molo Finance Buy to Let have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Molo Finance Buy to Let conveyancing panel

In this situation please clarify on the form what steps you have taken to find out the reasons behind cancellation of your Molo Finance Buy to Let panel membership. 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 informing you as to why they reached this decision?

You need to get in touch with Molo Finance Buy to Let to obtain standard documents. The CML Handbook incorporates an explicit question for banks to reveal who to contact to obtain standard documents. Molo Finance Buy to Let in their Part 2’s state: Always remember to disclose your Molo Finance Buy to Let conveyancing panel number.