Bank of Scotland Conveyancing Panel Information

Most lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Bank of Scotland as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Bank of Scotland we suggest that you call Bank of Scotland to check the position.

You need to be careful here as what you are suggesting may not be acceptable to the lender. It is possible that you (as a non-panel firm) or the mortgage applicant are not at liberty instruct a panel firm of your choice. An increasing amount of lenders are making 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 conveyancer. You also need to make the costs implications and potential for delay very clear to your client.

During 2013, 85 sections of the UK Finance Lenders’ Handbook P2 were changed by Bank of Scotland. Some changes are more important than others but as a firm on the Bank of Scotland 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.

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

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 adversely impact your application but gives the CQS team a complete picture of what has gone on.

You would be advised to get in touch with Bank of Scotland to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an individual question for banks to set out who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: It is likely that you will need to quote your Bank of Scotland conveyancing panel reference.