Paragon Mortgages Ltd Conveyancing Panel Information

As is the case with the Law Society the CLC has begun discussions with banks 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 Mortgages Ltd as well as the BSA.

You might expect Paragon Mortgages Ltd via their Part Two obligations to address this but the Handbook makes no mention on deadlines to send deeds. You need to look at the Terms of Paragon Mortgages Ltd’s Conveyancing Panel Appointment that you previously signed. For many lender's these Terms have a clause such as: ‘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 Paragon Mortgages Ltd updated. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

You need to be careful here as what you are proposing may not be acceptable to the mortgage company. It is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Lenders such as Nationwide BS make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender will appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancing firm. You also need to make the costs implications and potential for delay very clear to your client.

Assuming that your practice in is on the Paragon Mortgages Ltd conveyancing panel and you are instructed by 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 Mortgages Ltd are to lend, they may require indemnity insurance. In any event,you will need to check Paragon Mortgages Ltd’s specific requirements. Notwithstanding whether Paragon Mortgages Ltd will lend in such circumstances you still need to advise the borrower (unless you are acting for Paragon Mortgages Ltd alone) as to the risks of buying a property with an insolvent or absentee landlord.

You should 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 firm’s application but gives the Law Society a complete picture of what has occured.

You would be advised to communicate with Paragon Mortgages Ltd to obtain standard documents. The The Council of Mortgage Lenders Handbook has a specific section for banks to cite who to contact to obtain standard documents. Paragon Mortgages Ltd in their Part 2’s state: Always remember to disclose your Paragon Mortgages Ltd conveyancing panel reference.