Magellan Homeloans Conveyancing Panel Information

As is the case with the Law Society the Council of Licensed Conveyancers has initiated 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 Magellan Homeloans as well as the CML.

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

Magellan Homeloans approved panel lawyers have to comply with the UK Finance Lenders’ Handbook instructions relating to Transfer of Equity. These are set out in Section 16.3. First, your firm must approve the form of Transfer of Equity (which should be in the Land Registry's standard form) and, if Magellan Homeloans require, the deed of covenant on their behalf. You will need to check Magellan Homeloans CML Part 2 conditions to see if Magellan Homeloans have standard forms of transfer and deed of covenant. Please note that this requirement can change from one transaction to another so do check! Second,When drafting or approving a transfer, you should bear in mind that: although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage; the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check ; there should be no statement that all interest has been paid to date. Further obligations are set out in the UK Finance Lenders’ Handbook which have to be followed by all firms on the Magellan Homeloans conveyancing panel

In the circumstances please explain on the form what steps you have taken to discover the reasons behind cancellation of your Magellan Homeloans panel status. 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 putting you on notice?

You should communicate with Magellan Homeloans to obtain standard documents. The The Council of Mortgage Lenders Handbook incorporates an explicit question for banks to establish who to contact to obtain standard documents. Magellan Homeloans in their Part 2’s state: You will need to quote your Magellan Homeloans conveyancing panel number.