UK Finance launches new disclosure form for new build property
UK Finance released a new disclosure form on 21 February, which is to be used during the residential conveyancing process for new build property.
UK Finance represents nearly 300 of the leading firms providing finance, banking, markets and payments-related services in or from the UK. In July 2017, the Council of Mortgage Lenders' (CML) Handbook was renamed. the UK Finance Mortgage Lenders' handbook. The UK Finance Mortgage Lenders' Handbook provides comprehensive instructions for conveyancers acting on behalf of lenders in residential conveyancing transactions.
Version 1 of the Disclosure Form replaces version 2.1 of the Disclosure of Incentives Form. The Disclosure of Incentives Form (version 2.1) will continue to be valid until 1 August 2018.The new form is required for all newly built property that has yet to be occupied or purchased for the first time and any existing property that has yet to be occupied in its current form.
UK Finance states that the new form 'combines financial information about the sale of newly built, converted and renovated property transactions into a central place, simplifying the flow of information to all key parties in the purchase of a mortgage'.
The new form has ‘widened its scope beyond just information on incentives, to capture other crucial information about the newly built property which may need to be considered when making a lending decision’. This includes:
- Information on tenure type
- Method of construction
- Information on ground rents
The developer/seller is required to complete the form. The completed form must be supplied to the solicitor/conveyancer acting on behalf of the lender providing the mortgage finance for the property, and to the valuer acting on behalf of the lender upon request. The lender’s solicitor/conveyancer will only accept a fully completed and signed form.
The new form is designed to ensure full disclosure of the financial aspects of the transactions and key information about the property. The form should be treated as confidential information and should not be provided to anyone not directly involved in the transaction.
The new form is to be completed by reference to the UK Finance FAQ.