LendInvest Conveyancing Panel Information

As is the case with the Law Society the CLC has initiated dialogue with lenders 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. We expect that that the CLC have been in touch with lenders such as LendInvest in the recent past.

You need to be careful here as what you are intending may not be acceptable to the lender. It is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Many lenders 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.

The key here is the caveat ‘more onerous’. You have to try and take an objective view as to whether the Terms relating to the LendInvest conveyancing appointment (or other terms for other lenders) are ‘more onerous’ than the UK Finance Lenders’ Handbook Conditions. Depending on the Terms you may need to provide details on your renewal form. If you are in any doubt please call your broker to discuss before completing the answer.

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 LendInvest immediately. (b) 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 LendInvest’s mortgage offer are correct. If they are not, please let LendInvest know as soon as possible as it will be necessary for LendInvest to check with the valuer whether the valuation needs to be revised. LendInvest conveyancing panel solicitors are not expected to assume the role of valuer. LendInvest are simply trying to ensure that the valuer has valued the property based on correct information. (c) LendInvest 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. LendInvest recommend that, if we send a copy of a valuation report that LendInvest 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 survey or structural survey. If you do not receive a copy of the valuation you can always ask for a copy of one from LendInvest 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 LendInvest conveyancing panel

The Law Society’s CQS membership is no guarantee to lender panel acceptance. Nevertheless the Council of Mortgage Lenders have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. A number of Lenders now use CQS as the starting point for Panel approval such as Santander.

You would be advised to contact LendInvest to obtain standard documents. The CML Handbook includes an express section for banks to cite who to contact to obtain standard documents. LendInvest in their Part 2’s state: You will need to disclose the firm’s LendInvest conveyancing panel reference.