Skipton Building Society Conveyancing Panel Information

As is the case with the Law Society the Council of Licensed Conveyancers has begun discussions 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 Skipton Building Society in the recent past.

You might expect Skipton Building Society via their Part Two requirements to address this but the Handbook is silent on time frames. Do look at the Terms of Skipton Building Society’s Conveyancing Panel Appointment that you previously signed. For a number of banks these Terms have a clause along the following lines: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is important to keep Skipton Building Society informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

During 2013, 137 sections of the UK Finance Lenders’ Handbook P2 were changed by Skipton Building Society. Some changes are more important than others but as a firm on the Skipton Building Society conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

There are various requirements you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (a) You must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell Skipton Building Society immediately. (b) You should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation and as stated in Skipton Building Society’s mortgage offer are correct. If they are not, please let Skipton Building Society know as soon as possible as it will be necessary for Skipton Building Society to check with the valuer whether the valuation needs to be revised. Skipton Building Society conveyancing panel solicitors are not expected to assume the role of valuer. Skipton Building Society are simply trying to ensure that the valuer has valued the property based on correct information. (c) Skipton Building Society recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by their valuer and there may be omissions or inaccuracies in the report which do not matter to them as a lender but which would matter to the borrower. Skipton Building Society recommend that, if we send a copy of a valuation report that Skipton Building Society have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection such as a homebuyers survey or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Skipton Building Society or the borrower. You still need to comply with the UK Finance Lenders’ Handbook Requirement relating to valuation reports even if you don't receive one directly. Failure to comply not only runs the risk of facing a claim by the lender but also being removed from the Skipton Building Society conveyancing panel

CQS accreditation is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of firms. A number of Lenders now use CQS as the starting point for Panel acceptance such as Astra Mortgages.

You would be advised to get in touch with Skipton Building Society to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an individual question for lenders to cite who to contact to obtain standard documents. Skipton Building Society in their Part 2’s state: You will need to quote the firm’s Skipton Building Society solicitors panel number.