Zephyr Mortgages Conveyancing Panel Information

The Council of Mortgage Lender requirements of Zephyr Mortgages are silent on this. Most lenders address the issue of file retention via their Terms of panel appointment where they generally provide that for evidential purposes, the firm must keep the file for at least of 6 years from the date of the mortgage. Data imagining is normally suitable compliance with this requirement. Many lenders point out in that it is the practice of some fraudsters to demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is therefore important to retain these documents to protect Zephyr Mortgages’s interest. To be absolutely sure of Zephyr Mortgages requirements in this regard please check the Terms and Conditions of Zephyr Mortgages’s conveyancing panel appointment.

We can't comment specifically on Zephyr Mortgages. Many major lenders are now introducing ‘file auditing’ as standard practice in relation to completed matters. This raises questions of confidentiality in relation to the buyer client and the purpose to which the results of such audits will be put. The starting point is to remember that the file does not belong to your firm, it belongs to the ‘client’. But, of course, we will normally have two clients – the buyer and the lender - and you will owe a duty of confidentiality to each. So basically, you have to separate the file and just send the lender the parts solely relating to themselves. But, of course, as this will basically be correspondence with the lender, mortgage instructions etc.

Check with your COLP but a firm should not send the complete conveyancing file without the buyer client’s express consent – and if she is in dispute with the lender she is hardly likely to agree. However, if the lender can establish a prima facie case of fraud, then you may be under an obligation to disclose the whole file.

The emerging convention is that lenders are including an authority to disclose in loan application forms to counter this problem. Mortgage Express v Sawali, [2010] EWHC 3054 (Ch) indicates that such provisions are valid. Please click here for more information about that case.

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

The Law Society’s CQS membership is no guarantee to lender panel acceptance. Nevertheless the CML have indicated that it is likely to become a prerequisite for firms wishing to join their approved list of firms. A number of Lenders now use the scheme as the starting point for Panel membership as is the case with HSBC.

You should get in touch with Zephyr Mortgages to obtain standard documents. The The Council of Mortgage Lenders Handbook contains an explicit section for lenders to reveal who to contact to obtain standard documents. Zephyr Mortgages in their Part 2’s state: Don’t forget to quote the firm’s Zephyr Mortgages solicitors panel number.