Precise Mortgages Conveyancing Panel Information

You need to be careful here as what you are proposing may not be acceptable to the lender. It is possible that you (as a non-panel firm) or the mortgage applicant are not entitled instruct a panel firm of your choice. Lenders such as Nationwide BS make it clear to their panel firms that where a non-panel member firm is instructed by one of their mortgage applicants, the lender must appoint a panel firm to carry out its instructions and to liaise with the borrower's conveyancing firm. You also need to make the costs implications and potential for delay very clear to your client.

During 2013, 27 sections of the UK Finance Lenders’ Handbook P2 were changed by Precise Mortgages. Some changes are more important than others but as a firm on the Precise Mortgages 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.

There are various requirements 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 Precise Mortgages 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 Precise Mortgages’s mortgage offer are correct. If they are not, please let Precise Mortgages know as soon as possible as it will be necessary for Precise Mortgages to check with the valuer whether the valuation needs to be revised. Precise Mortgages conveyancing panel solicitors are not expected to assume the role of valuer. Precise Mortgages are simply trying to ensure that the valuer has valued the property based on correct information. (c) Precise Mortgages 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. Precise Mortgages recommend that, if we send a copy of a valuation report that Precise Mortgages 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 Precise Mortgages 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 Precise Mortgages conveyancing panel

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

In the circumstances please explain on the form what steps you have taken to discover the reasons behind cancellation of your Precise Mortgages panel status. In particular please provide details if you have received communications from the lender. E.G. before revocation 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 communicate with Precise Mortgages to obtain standard documents. The CML Handbook incorporates an individual section for banks to reveal who to contact to obtain standard documents. Precise Mortgages in their Part 2’s state: Always remember to quote your Precise Mortgages solicitors panel reference.