Virgin Conveyancing Panel Information

Section 16.2.1 of the UK Finance Lenders’ Handbook relevant to a solicitor on the Virgin conveyancing panel reads ‘Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel but if you are instructed the appropriate provisions of this Handbook will apply’.

One might ordinarily expect Virgin via their Part Two obligations to address this but the Handbook makes no mention on time frames. You need to look at the Terms of Virgin’s Conveyancing Panel Appointment that you are bound by. For many lender's these Terms contain a clause such as: ‘To keep us informed of the reasons for any delay in your being able to send the title deeds and documents we require to us within 3 months of completion or evidence of proof of registration within that period. (We will send reminders if the deeds have not been received but will not acknowledge receipt of deeds’ It is imperative to keep Virgin informed. Law firms can often compound their problems by not communicating with the lender when there is a delay or problem.

In the same way that there is a unique Virgin 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.

During 2013, 195 sections of the UK Finance Lenders’ Handbook P2 were changed by Virgin. Some changes are more important than others but as a firm on the Virgin 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.

In the circumstances please clarify on the application what steps you have taken to discover the reasons behind cancellation of your Virgin panel membership. In particular please provide details if you have received communications from the lender. E.G. before cessation of your panel membership did you receive any letters or calls from the lender putting you on notice?

You need to contact Virgin to obtain standard documents. The The Council of Mortgage Lenders Handbook includes an express section for lenders to establish who to contact to obtain standard documents. Virgin in their Part 2’s state: You will need to disclose the firm’s Virgin conveyancing panel reference.