The Council of Mortgage Lenders (CML) has issued new
instructions for those who are acting only for a lender in a
conveyancing transaction. These instructions will form a new Part 3 of the CML
Lenders' Handbook and will take effect from 2 July.
As lenders have taken steps to reduce their panels there has
been an increase in cases of separate representation over the last
12-18 months. Many members have expressed concerns over the range
of instructions that lenders have issued in these situations. The
Law Society therefore encouraged the CML to introduce a standard
set of instructions for use in separate representation cases in
order to provide some consistency in these kinds of transactions.
Currently in separate representation cases lenders issue their own
requirements which in practice has led to some difficulties and
delay.
An example standard requirements letter and undertaking to be
used in relation to the borrowers' solicitor will also be
available. However these are in practice likely to be adapted by
some lenders so there may still need to be some negotiation.
The Law Society will monitor how the new instructions operate in
practice and will endeavour to work with the CML to make further
amendments where necessary.