Conveyancing Handbook

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You should take reasonable steps to verify that the assumptions stated by the First Charge Mortgage Lender’s Valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the First Charge Mortgage Lender’s Valuation Report are correct. If they are not, please: Same as Part 1 in the UK Finance Lenders’ Handbook for Conveyancers– save for the word “will” in the final sentence of Section 5.11.2 Part 1 will be replaced with the word “may”. not exchange contracts until the re-inspection by the First Charge Mortgage Lender’s Valuer has taken place the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

House conversions into flats will not qualify for the Scheme. You are immediately required to notify us if the Property was used formerly as a House. N2 - The Law Society's Conveyancing Handbook is revised annually by a team of expert editors and contributors directed by an editorial board and edited by Frances Silverman.It presents up-to-date guidance on current good practice in residential conveyancing and is a reliable and up-to-date source of reference to answer the common queries arising from day-to-day transactions. Appendices include Law Society protocol, codes and formulae; and other Law Society practice information, including revised COVID-19 industry guidance. You are required to notify the Help to Buy Agent if the Property is subject to any existing Green Deal Plan. 6.The PropertyIf you become aware that the Borrower is not providing the Borrower’s Cash Contribution from their own funds or is proposing to give a further charge over the Property (other than the First Charge Mortgage Lender’s Advance as disclosed in your Solicitor’s Form 1 Undertaking) you must immediately report this to the Help to Buy Agent, if the Borrower agrees. If the Borrower does not agree you must return our instructions and explain that you are unable to continue to act for us as there is a conflict of interest. Same as Part 1 in the UK Finance Lenders’ Handbook for Conveyancers – and you must report any entry relating to the Borrower to the Help to Buy Agent. The CML Handbook is split into two parts. Part 1 is applicable to all CML members. To allow for the fact that some lenders will want to take a different approach on certain points, each lender has its own CML Handbook part 2. Part 1 will sometimes refer the reader to the individual lender's Part 2 for its specific instructions.

the full re-instatement value of the Property recommended by the First Charge Mortgage Lender’s Valuation Report (and any building it forms part of); or If the Property Information Form states the name of a person who is to live at the Property, you should ask the Borrower before completing the Equity Mortgage that the information given to us in the Property Information Form about any occupants aged 17 or over is correct and no other persons aged 17 or over will live at the Property. In the transfer every incoming owner must covenant with the lender to repay the mortgage. The lender's preferred form of covenant is "The new borrower agrees to pay the lender all the money due under the Mortgage and will keep to all the terms of the Mortgage". Unless the lender states otherwise in its CML handbook part 2 a certified copy of the transfer is to be placed with the title deedsThe Property must not be affected by any improvement or repair grant which will not be discharged prior to completion of the Equity Mortgage. The mortgage deed which the borrower must sign will incorporate the lender's standard mortgage (and if applicable loan) conditions, and this should be explained to the borrower as should the implications of taking a charge against property. If a conditions booklet is supplied by the lender this should be given to the borrower. the Property has the benefit of any necessary planning consents (including listed building consent) and building regulation approval for its construction and any subsequent change to the Property and its current use; and

Within 14 days of completion notice of transfer and charge of the commonhold unit must be sent to the commonhold association. You must explain to the borrower that he take any further lending against the property an additional policy may be required and you must explain the conditions and that he must comply with them. The policy should always cover the lender. It may not cover the borrower in some cases and if it does not then the borrower must be informed of this. 10 The Loan and Certificate of Title Even though some lenders allow advice to be given to guarantors and occupiers etc. there is it seems a great potential for a conflict to arise in these situations and in my view at least, a solicitor should not agree to give advice, beyond advising that the person in question should seek independent advice but that they are not obliged to do so (unless the lender specifically requests that any documents they need to sign are witnessed by a solicitor, in which case the solicitor must be independent). 9 Indemnity InsuranceWe are not expecting you to assume the role of a valuer. We are simply trying to ensure that the First Charge Mortgage Lender’s Valuer has valued the Property based on correct information. The Conveyancing Handbook has been a trusted first port of call for thousands of practitioners for over 28 years. This year’s edition has been extensively updated to include the latest guidance on good practice in residential conveyancing and is a crucial resource for answering queries arising from day-to-day property transactions. Japanese Knotweed means the plant commonly referred to as “Japanese knotweed” (or any other invasive plant species that potentially could cause damage to the foundations of the Property). Business Day means any day other than a Saturday, Sunday or a statutory Bank Holiday in England or any day between 24 December and 3 January (inclusive). You should always ensure that the ground rent does not exceed a peppercorn per annum. If any other ground rent is proposed, we will not be able to proceed with the Scheme in relation to the Property and you must return to the Help to Buy Agent all Scheme paperwork.