Today the CML will publish a new Part 3 of the Handbook for England and Wales, which provides instructions where there is separate representation of the lender and the borrower. The CML will be considering similar changes for the other versions of the Handbook in due course.
We have been informed by Conveycentric, the creators of LENDERmonitor, that simultaneously with thePublication of Part 3s, the CML have made some amendments to the Lenders’ Handbook for England and Wales Part 1 as part of a more general update of the Handbook for England and Wales. This will include the addition of three new Part 2 questions. Here is a copy of the Part 1 amendments list, showing the changes.
Simon Seaton of Conveycentric comments, “These are the most significant changes to Part 1 of the Handbook for nearly 5 years. They apply with immediate effect; therefore it is imperative that they are understood and adopted straight away.”
Seaton points out that two of the more notable changes are as follows:
Section 5 of the Handbook now includes a clause 5.2 covering the situation where the seller is not the owner or registered proprietor. This change is a consequence of the splitting of the previous 5.1 into two separate paragraphs to improve clarity for the reader and make it clear that there is a reporting requirement if the property has been owned for less than six months.
A new paragraph has been added to create requirements to report to the lender on energy technologies installed on residential properties, including where there is a lease of airspace for solar panels. This includes two new Part 2 questions. The first includes an optional reporting requirement where the lease of roof space for solar panels doesn’t meet with the CML minimum requirements.
The second allows for lenders to list any additional requirements they have with regard to such leases, over and above the CML minimum requirements.
Conveycentric’s LENDERmonitor product provides conveyancers with a subscription service that sends out email alerts advising when a lender makes a change to their policy. Subscriptions are currently free to Sole Practitioners.