LendInvest Conveyancing Panel Information

Section 16.2.1 of Part 1 of the Handbook applicable to a solicitor on the LendInvest 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’.

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 compliance officer 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.

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

CQS membership gives 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. A number of Lenders now use the Conveyancing Quality Scheme accreditation as the starting point for Panel approval such as HSBC.

You should get in touch with LendInvest to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates a specific inquiry for banks to establish who to contact to obtain standard documents. LendInvest in their Part 2’s state: It helps to disclose the firm’s LendInvest conveyancing panel reference.