Yorkshire Building Society has instructed me to represent them alone on a residential conveyancing matter , using the CML Lender’s Handbook. The borrower has his own solicitor (not on the
Yorkshire Building Society conveyancing panel) How will this work and are there different requirements from Yorkshire Building Society in this circumstance?
The CML, along with
Yorkshire Building Society and other members developed a standard set of instructions where a conveyancer is representing a lender such as Yorkshire Building Society alone in a residential conveyancing matter.
These legal instructions are contained at Part III of the UK Finance Lenders’ Handbook and are to be followed together with Sections One and Two.
The CML have published an example requirements letter to the borrower’s lawyer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel conveyancer.
An established client of mine is buying a detached house for £700,000 in Liverpool requiring a mortgage advance over GBP 410k.
I am on the
Yorkshire Building Society conveyancing panel but do Yorkshire Building Society have a separate approved panel when a mortgage is above 350k?
Lexsure only know of two or three banks that operate a distinct conveyancing panel where the mortgage advance is over a certain threshold.
You should nevertheless check directly with
Yorkshire Building Society. 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 Yorkshire Building Society
It is possible that Yorkshire Building Society could request or audit my files as I am on the
Yorkshire Building Society conveyancing panel. Are there any confidentiality issues that I need to consider first?
We can't comment specifically on
Yorkshire Building Society. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the buyer client and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.
Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if she is in dispute with the lender she is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.
The emerging convention is that lenders are including an authority to
disclose in loan application forms to counter this problem.
Express v Sawali,  EWHC 3054 (Ch) indicates that such provisions
are valid. Please click
here for more information about that case.
Who do building societies allow to be on their Conveyancing Panels?
In the same way that there is a unique Yorkshire Building Society
conveyancing panel most building societies, operate a conveyancing
panel for solicitors and other conveyancers that the lender will
instruct. Terms and Conditions and criteria for inclusion on a
building society conveyancing panel vary from lender-to-lender. Having
CQS accreditation may be a requirement. Institutional lenders, such
as a building society, is a client and is entitled to instruct the
solicitor or conveyancer of its choosing (who, in turn, is free to
accept or refuse instructions). Therefore, if lender and borrower
cannot agree which solicitor or conveyancer should represent them
jointly, they would usually proceed on a separate representation
basis. The BSA have not published the equivalent of the UK Finance Lenders’ Handbook
Marsh’s PI Insurance renewal form enquires if my firm had been excluded from any mortgage panels in the last year.
I recently became aware that the firm is no longer on the
Yorkshire Building Society conveyancing panel? Will that effect my PII premium?
The best placed professionals to answer this question are your insurance brokers.
The chances are that on the basis that you have not been removed for
fraud or negligence reasons that there will be little or no
impact. The main reason why a firm would be removed off of a lender
panel is due to low volume of conveyancing cases although there may be
a number of criteria for Yorkshire Building Society solicitor panel
membership. Please remember that it is always important that you
complete your insurance forms accurately.
Our practice is on the
Yorkshire Building Society
conveyancing panel and all set to complete a purchase within the next few weeks. I can not locate a Legal Charge for the client to execute.
Who do I contact at Yorkshire Building Society to request substitute deeds?
You should communicate with Yorkshire Building Society
to obtain standard documents. The CML Handbook has a specific inquiry for lenders to enumerate who to contact to obtain standard documents.
It is likely that you will need to disclose your Yorkshire Building Society conveyancing panel number.