LendInvest Conveyancing Panel Information

The CML, along with LendInvest and other stakeholders created a standard set of instructions where a solicitor is representing a lender such as LendInvest alone in a residential conveyancing matter. These legal instructions are contained at Part Three of the UK Finance Lenders’ Handbook and are to be read together with Sections One and Two. The CML have published an example requirements letter to the borrower’s lawyer for adaptation by the lender's conveyancer, and sets out to the borrower's conveyancer, the documentary and information requirements of the lender's panel solicitor.

The CML Part II requirements of LendInvest are silent on this. Most lenders deal with the issue of file retention via their Terms and Conditions where they generally provide that for evidential purposes, the firm must keep the file for a minimum six years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that it is the practice of some fraudsters to demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is therefore important to retain these documents to protect LendInvest’s interest. To be absolutely sure of LendInvest requirements in this regard please check the Terms and Conditions of LendInvest’s conveyancing panel membership.

The CLC has begun 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. It is likely that that the CLC have been in touch with lenders such as LendInvest in the recent past.

What you should do largely depends on the reason that your firm has been removed off the LendInvest 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 LendInvest conveyancing panel.

CQS membership is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to remain on their approved list of conveyancing solicitors. Some Lenders now use the scheme as the starting point for Panel approval as is the case with Astra Mortgages.

You would be advised to communicate with LendInvest to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates a specific question for banks to set out who to contact to obtain standard documents. LendInvest in their Part 2’s state: Don’t forget to disclose your LendInvest conveyancing panel reference.