Holmesdale Building Society Conveyancing Panel Information

Paragraph 16.2.1 of Part 1 of the Handbook relevant to a solicitor on the Holmesdale Building Society conveyancing panel reads ‘Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel but if you are instructed the appropriate provisions of this Handbook will apply’.

The CLC has begun dialogue 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 Holmesdale Building Society in recent years.

The answer to this question really depends on the reason that your firm has been removed off the Holmesdale Building Society conveyancing panel. The top 3 reasons are as follows:

1. lack of transactions
2. the lawyer is a sole practitioner
3. as part of the HSBC panel reduction.

In these three circumstances it is unlikely that you would expected to take any action. Disclosure and other compliance considerations are more likely to be relevant if the reason for removal is due to breaches of lender requirements or allegations of fraud or negligence. Whether the reasoning should trigger a disclosable 'material' breach will depend on the firm and the circumstances around possible failures to comply with the SRA Authorisation Rules, and the SRA will judge each case on its own merits. Factors such as the detriment or risk of detriment to clients, the scale of the issue and overall impact on the firm will need to be considered in deciding whether a failure is 'material'. As the COLP you will need systems to identify patterns of breaches. Even if you don't consider there to be regulatory implications the firms COFA should give some thought to whether she/he needs to take any action as result of being removed from the Holmesdale Building Society conveyancing panel.

During 2013, 18 sections of the UK Finance Lenders’ Handbook P2 were changed by Holmesdale Building Society. Some changes are more important than others but as a firm on the Holmesdale 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.

In this situation please explain on the application what action you have taken to discover the reasons behind cancellation of your Holmesdale Building Society 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 need to get in touch with Holmesdale Building Society to obtain standard documents. The The Council of Mortgage Lenders Handbook includes a specific inquiry for banks to reveal who to contact to obtain standard documents. Holmesdale Building Society in their Part 2’s state: Always remember to quote the firm’s Holmesdale Building Society conveyancing panel number.