Aviva Equity Release Conveyancing Panel Information

The Law Society of Scotland has advised that solicitors should check their lender panel status prior to accepting client instructions to act. The advice is lender-agnostic as it does not relate specifically to solicitors on the Aviva Equity Release conveyancing panel. The recommendation arises from the practice of a number of mortgage lenders who remove solicitors from their panels without prior notice as part of their panel management system, which can lead to some solicitors discovering this only once instructed. This is sensible advice as a client finding out midway through a transaction that their lawyer is not on the approved lender panel is very frustrating and can lead to complaints. Many online consumer forums contain posts where someone is complaining about finding that their lawyer is not on a lender conveyancing panel. Such forums include mumsnet.com

You have a number of obligations in this regard which you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. First, 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 Aviva Equity Release immediately. (II) 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 Aviva Equity Release’s mortgage offer are correct. If they are not, please let Aviva Equity Release know as soon as possible as it will be necessary for Aviva Equity Release to check with the valuer whether the valuation needs to be revised. Aviva Equity Release conveyancing panel solicitors are not expected to assume the role of valuer. Aviva Equity Release are simply trying to ensure that the valuer has valued the property based on correct information. (c) Aviva Equity Release 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. Aviva Equity Release recommend that, if we send a copy of a valuation report that Aviva Equity Release 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 report or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from Aviva Equity Release 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 Aviva Equity Release conveyancing panel

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

In this situation please explain on the form what action you have taken to discover the reasons behind cancellation of your Aviva Equity Release panel membership. 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 would be advised to communicate with Aviva Equity Release to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an explicit inquiry for lenders to set out who to contact to obtain standard documents. Aviva Equity Release in their Part 2’s state: It helps to disclose your Aviva Equity Release solicitors panel reference.