Bank of Scotland Conveyancing Panel Information

As is the case with the Law Society the CLC 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. We expect that that the CLC have been in touch with lenders such as Bank of Scotland as well as the BSA.

Most lenders do not operate a specific buy to let conveyancing panel but we are hearing about a few that do. We do not know what the position is with Bank of Scotland as at todays date. If you're about to receive instructions from a client on a buy to let purchase with a mortgage from Bank of Scotland we suggest that you call Bank of Scotland to check the position.

The concern here is if you are expect to enter into ‘more onerous’ conditions that than the Handbook obligations. You have to try and take an objective view as to whether the Terms relating to the Bank of Scotland 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.

Given that your practice in is on the Bank of Scotland conveyancing panel and you are instructed by 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 Bank of Scotland are to lend, they may require indemnity insurance. In any event,you will need to check Bank of Scotland’s specific requirements. Notwithstanding whether Bank of Scotland will lend in such circumstances you still need to advise the borrower (unless you are acting for Bank of Scotland alone) as to the risks of buying a property with an insolvent or absentee freeholder.

In the circumstances please clarify on the form what action you have taken to find out the reasons behind cancellation of your Bank of Scotland panel membership. 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 informing you as to why they reached this decision?

You would be advised to contact Bank of Scotland to obtain standard documents. The CML Handbook incorporates an explicit question for lenders to cite who to contact to obtain standard documents. Bank of Scotland in their Part 2’s state: It helps to quote your Bank of Scotland conveyancing panel reference.