LendInvest Conveyancing Panel Information

In the same way that there is a unique LendInvest conveyancing panel most building societies, operate a conveyancing panel for solicitors and other conveyancers that the lender will instruct. Terms and Conditions and criteria for inclusion on a building society conveyancing panel vary from lender-to-lender. Having CQS accreditation may be a requirement. Institutional lenders, such as a building society, is a client and is entitled to instruct the solicitor or conveyancer of its choosing (who, in turn, is free to accept or refuse instructions). Therefore, if lender and borrower cannot agree which solicitor or conveyancer should represent them jointly, they would usually proceed on a separate representation basis. The BSA have not published the equivalent of the UK Finance Lenders’ Handbook Part 3s.

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 moving forward on this question.

There are various requirements you need to follow if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (I) 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. Second, 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. Thirdly, 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 report 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

Given that your practice in is on the LendInvest conveyancing panel and you are representing 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 accreditation 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 conveyancing solicitors. Some Lenders now use the Conveyancing Quality Scheme accreditation as the starting point for Panel approval such as Astra Mortgages.

You should communicate with LendInvest to obtain standard documents. The CML Handbook has an express question for banks to establish who to contact to obtain standard documents. LendInvest in their Part 2’s state: Please remember to quote the firm’s LendInvest conveyancing panel number.