Paragon Residential Conveyancing Panel Information

The Council of Licensed Conveyancers 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 Paragon Residential as well as the BSA.

There are many reports available, five of which are as follows:

• The percentage of the firm’s business which is conveyancing (broken down into sale/purchase and remortgage)
• Number of conveyancing cases by lender
• Evidence of undertaking logs
• Buy to Let transactions
• Disclosure/Notification to Lender analysis indicating frequency and nature of disclosures - to include benchmarking analysis against aggregate data

Paragon Residential approved solicitors are bound by 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 Paragon Residential require, the deed of covenant on their behalf. You will need to check Paragon Residential CML Part 2 conditions to see if Paragon Residential 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 Paragon Residential conveyancing panel

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

We would recommend that you provide details of the date of removal, information on the reason for removal, date of appeal and any reason given for reinstatement. This should not negatively affect your application but gives the CQS team a complete picture of what has gone on.

You would be advised to get in touch with Paragon Residential to obtain standard documents. The CML Handbook has a specific inquiry for banks to cite who to contact to obtain standard documents. Paragon Residential in their Part 2’s state: Always remember to quote your Paragon Residential conveyancing panel number.