Pepper Money (UK) Conveyancing Panel Information

Pepper Money (UK) make no specific obligation to carry out any of the searches listed. The UK Finance Lenders’ Handbook simply states that ‘you must ensure that any other searches which may be appropriate to the particular property, taking into account its locality and other features are carried out’.

Remember that most ‘less usual searches’ (as described in the Law Society’s Conveyancing Handbook) are not optional as far as Pepper Money (UK) are concerned if they are ‘appropriate’. Most lenders will not require environmental searches (you should Check Part 2 of UK Finance Lenders’ Handbook to be sure), but you are obliged to explain risks and availability to the client.

Ground stability, Plansearch,flood searches as well as the searches listed in the question are optional – but only to the extent that you have allowed the borrower client to make an informed choice. Regardless of whether there is a mortgage, If you have not advised the client that these (and other) searches are available and what risks they cover, then you will be liable if the client suffers loss through not conducting one. Does your ROT and Ts and Cs cover this?

A leading search provider lists over 65 property searches – do you know what all of them are and when they may be relevant? If you are unsure as to which searches are appropriate based on location contact your search provider or call one of the leading search companies such as Searchflow.

During 2013, 0 sections of the UK Finance Lenders’ Handbook P2 were changed by Pepper Money (UK). Some changes are more important than others but as a firm on the Pepper Money (UK) conveyancing panel you are of course obliged to comply with individual lender requirements, as set out in Part II of the UK Finance Lenders’ Handbook. Locktons have recently pointed out in an article that non-compliance with Part 2 requirements account for a number of high value claims, and it is therefore important to be aware of any particularly onerous terms that an individual lender may impose.

Remember: CML requirements are not guidelines; they are the lender client’s instructions.

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 Pepper Money (UK) 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 completing the answer.

You have a number of obligations in this regard which are to followed if you wish to comply with your lender client’s instructions as set out in the UK Finance Lenders’ Handbook. (a) 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 Pepper Money (UK) immediately. (b) 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 Pepper Money (UK)’s mortgage offer are correct. If they are not, please let Pepper Money (UK) know as soon as possible as it will be necessary for Pepper Money (UK) to check with the valuer whether the valuation needs to be revised. Pepper Money (UK) conveyancing panel solicitors are not expected to assume the role of valuer. Pepper Money (UK) are simply trying to ensure that the valuer has valued the property based on correct information. (c) Pepper Money (UK) 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. Pepper Money (UK) recommend that, if we send a copy of a valuation report that Pepper Money (UK) 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 Pepper Money (UK) 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 Pepper Money (UK) conveyancing panel

The Law Society’s CQS membership 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 remain on their panels. A number of mortgage companies now use the scheme as the starting point for Panel acceptance as is the case with Santander.

You need to get in touch with Pepper Money (UK) to obtain standard documents. The The Council of Mortgage Lenders Handbook has an explicit inquiry for banks to enumerate who to contact to obtain standard documents. Pepper Money (UK) in their Part 2’s state: It helps to disclose your Pepper Money (UK) conveyancing panel number.