Sainsbury's Bank Conveyancing Panel Information

The CML, together with Sainsbury's Bank and other lenders developed a standard set of requirements where a solicitor is acting for a lender such as Sainsbury's Bank alone in a residential conveyancing matter. These requirements are contained at Part 3 of the UK Finance Lenders’ Handbook and are to be read together with Parts 1 & 2. The CML have published an example requirements letter to the borrower’s lawyer 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.

Lexsure 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 Sainsbury's Bank. 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 Sainsbury's Bank

In operating open conveyancing panels, lenders such as Sainsbury's Bank face a number of fraud and negligence risks. While there is no authoritative source of data on lender exposure to solicitor–led mortgage fraud, anecdotal evidence from lenders indicates exposure on individual cases are often in the millions of pounds. The National Fraud Authority estimates that £1bn per year is lost in mortgage -related frauds in total, which is seen as a conservative estimate.

These risks are exacerbated by the lack of a comprehensive set of data on all conveyancing firms (which, for the avoidance of doubt, would include solicitors and conveyancers across the UK) which is in a readily accessible format. Currently, lenders vet the suitability of their panel firms against a variety of disparate, incomplete and potentially inaccurate sets of information. One top 5 lender pointed out to us that it is almost impossible to track individual fraudsters who move from firm to firm, especially where they are no longer registered or no longer hold a valid practicing certificate.

Sainsbury's Bank and other lenders are in varying stages of reviewing their approach to vetting firms on their conveyancing panels, to ensure their ongoing exposure to unsuitable firms is reduced. There is also regulatory impetus on lenders to ensure that they have satisfactory oversight of their third party panels, including a due-diligence process.

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

In the circumstances please explain on the form what steps you have taken to find out the reasons behind cancellation of your Sainsbury's Bank panel status. In particular please provide details if you have received communications from the lender. E.G. before termination 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 contact Sainsbury's Bank to obtain standard documents. The CML Handbook incorporates an express question for banks to establish who to contact to obtain standard documents. Sainsbury's Bank in their Part 2’s state: Please remember to quote the firm’s Sainsbury's Bank conveyancing panel reference.