Information for Solicitors acting for Accord Mortgages in a Buy to Let mortgage
This section contains information for solicitors. It is designed to address the most common queries we receive from our instructed legal advisers, and those legal advisers dealing with the administration of estates.
Members of the public should consult a qualified legal practitioner before acting on the basis of any information contained in these pages.
Evidence of Registration
Until 31 December 2003 Accord Mortgages insisted that Title Deeds were deposited as security for a mortgage loan. However following the Land Registration Act 2002 and subsequent secondary legislation which provided the framework for an electronic Register, we dispensed with the need to submit Title Deeds from 1 January 2004.
We require our instructed solicitor to send us an official copy of the register entries and any filed plan, to confirm our charge has been registered. We also require you to send us the original, or a certified copy, of the completed mortgage deed.
This documentation will be scanned and held electronically by us. Solicitors are instructed to release any other title documents to our borrower or retain them on their client’s behalf.
Solicitors should take the borrower’s instructions regarding any other title documents. When these are delivered to a borrower, the borrower should be advised that the documents may be required in the future and should therefore be kept in a safe place so that they can be handed over to any subsequent buyer.
Please note Accord Buy to Let does not receive confirmation of registration of its charge from the Land Registry.
Accord Mortgages discharges its Buy to Let mortgages by executing a Land Registry DS1 form (or DS3 form if it is a partial discharge).
The attestation clause that is used is:
“Executed as a deed by affixing the Common Seal of Accord Mortgages Limited in the presence of:
By Authority of the Board of Directors”
The discharge document should be sent for execution to:
Customer Services Team
Accord Buy to Let
PO Box 869
Join our conveyancing panel
To join our panel of conveyancers you will need to complete an application form.
Firms will be required to re-register to the panel if they have not acted for Accord Mortgages in the grant of a mortgage for a period longer than 12 months. You can check if your firm is still registered as active on our on panel using our online panel checking tool .
Should you simply wish to add an additional office, please complete and return the additional office application form checklist. All completed applications should be sent to:
Conveyancing Panel Administration
Customer Service Centre
Yorkshire Building Society
We will write to you to let you know whether your application has been successful.
Panel Admission Notes
Conveyancing Quality Scheme (CQS) - All solicitors located in England and Wales who apply to join the panel will require CQS accreditation.
PII cover – Insurance held must meet our requirements in respect of a minimum financial security rating – AM Best B+ or Standard and Poor’s A – Minimum cover of £2,000,000 for sole practitioners and partnerships and then minimum of £3,000,000 for LLP and Limited Companies.
Period – Firms will be required to re-register to the panel if they have not acted for Accord Mortgages in the grant of a mortgage for a period longer than 12 months.
Notification – You must undertake to notify Accord Mortgages in the event of any change in the accuracy of the required information.
Discretion - Membership of the Accord Mortgages’ Conveyancing panel is at the absolute discretion of Accord Mortgages.
Active Cases - If you have an active case please indicate and include your client’s name and case number (where known) on the appropriate section of the application form. This will help decrease the time taken to process your client’s application.
If you have any further queries regarding our panel admission process please call 0345 8480226.
Release of Funds
Accord Buy to Let releases its advance funds by means of CHAPS on the working day prior to the proposed completion day. This has the following benefits:
- Cleared funds are immediately available on the day of completion without the delay which may be experienced if funds are released on the day of completion
- Funds will be paid direct to your bank account avoiding the need for you to present a cheque for payment.
- Any delay in the expected completion date can be notified to us up to two days before the day of completion thereby avoiding the need to return cheques to Accord Buy to Let which may otherwise have been issued several days in advance of the completion date.
To enable us to release funds to you it will be necessary for you to provide us with your client account bank details. Please inform us as soon as possible of any subsequent amendments to your banking arrangements.
These are some of our most Frequently Asked Questions from legal advisers. Most questions can be answered by our Mortgage Instructions which are by reference to the CML Lenders' Handbook.
If you have any questions that are not covered by our Mortgage Instructions and are not listed below, write to Accord Buy to Let, PO Box 869, Newport NP20 9GY (Fax number 0345 848 0305) summarising the legal risks and advise what should be done to protect our interest. You should not complete the mortgage until you have our further instructions.
Will you lend on the basis of a second charge over the security property?
No. Our Mortgage Instructions are quite specific - we require you to obtain a fully enforceable first legal mortgage on our behalf. We will not lend on the basis of a second charge.
Will you accept a Deed of Postponement sent to me by the Second Chargeholder?
No. We do not permit the registration of any second or subsequent charges against the security property. Any existing mortgage must be repaid and the charge cancelled at the Land Registry.
Are you prepared to lend on a property in the absence of planning consent/building regulations approvals for previous alterations?
We use valuers and not surveyors to carry out a valuation of the property to form security for the loan. However we will refer this issue to the valuer to ascertain whether the lack of planning authority consents affects their valuation. However this is not purely a valuation issue but also a legal one on which you must recommend a course of action. Our Mortgage Instructions require you to ensure that there is nothing which would make the property the subject of enforcement action (section 5.3 CML Lenders' Handbook ) and so you must advise us on what can be done in order for you to be able to submit a clear Certificate of Title.
Can I proceed if an Indemnity Policy is in place in the absence of planning consent/building regulations approvals for previous alterations to the property?
We rely on you to be satisfied that the policy provides a solution to the difficulty identified and to approve the policy on our behalf - we require you to recommend a course of action in connection with the legal issues surrounding the lack of planning authority consents. However, lack of these consents also raises a valuation issue because where it is clear that such alterations have been made our valuer will have valued the property on the basis that all necessary consents have been obtained. We will need to refer the issue to the valuer for confirmation that lack of necessary consents will not affect the valuation.
Do you have any specific requirements in respect of Indemnity Policies? Should any policies be sent in for approval?
Please don't send the policy to us - we will not review it. Our Mortgage Instructions which refer to section 9 of CML Lenders' Handbook set out our requirements and make it clear that we expect you to approve the policy on our behalf.
My clients have obtained planning permission to develop part of the garden of the security property and now have a buyer for it. What are your requirements?
Initially you should contact our Customer Services Team with a plan showing the extent of the security property and the piece of land which is to be sold. Our Customer Services Team will then contact the borrower - it will be necessary for us to instruct a valuer to assess whether the release of the garden area will affect our security.
If our security is unaffected then Customer Services will instruct you to prepare a discharge of the mortgage over the relevant piece of land and will arrange for its execution. However, if the proposed sale affects our security then the Customer Services Team will also confirm the amount of the capital repayment which will be required to enable the piece of land to be discharged from the mortgage. Depending upon the terms of your clients' mortgage product early repayment charges may be triggered by the capital repayment.
Please note that we charge a fee for an application for the release of property from our security and your clients should consult our Buy to Let Loans Administration Fee Tariff for the current fee.
My clients intend to purchase some land adjoining their property to increase the size of their garden. Do you require a mortgage over this additional land?
Where an existing borrower is purchasing adjoining land or property which will be incorporated into the security property (this is irrespective of the purchase monies being provided with the assistance of an additional loan from the Society) e.g. to incorporate the neighbouring house to make a larger dwelling or a piece of land to make a larger garden, then we require a first legal mortgage over that land or property. You must use our standard form. For England & Wales, this is the Mortgage on Additional Property Deed.
In all cases, we will require you to confirm to us that title to the adjoining land or property is good and marketable in accordance with the provisions of the relevant CML Lenders' Handbook. This means that, amongst other things, you must ensure that all usual and necessary searches and enquiries have been made and that our mortgage is registered (where applicable) at the appropriate Land Registry as a first legal mortgage.
If the borrower intends to use his own funds to purchase land or property which is completely separate from the security property and which could never be incorporated physically within the security property then we would not require a mortgage over the additional property in these circumstances.
What are your requirements if my client wants to extend the term of his lease or surrender his original lease and be granted another?
In these circumstances i.e. where an existing lease is being surrendered by the borrower in return for the grant of a new lease or where an existing lease is being varied by an extension of the term which at law takes effect as the grant of a new lease - and we have agreed to the extension of the term/new lease, then you must use our standard form.
For England & Wales, this is the Mortgage Deed Substituted Security. Under this Deed, we release our charge over the whole of the original property (the original lease) and take a new charge over the whole of the new property (the new lease or the lease as extended) subject to the Mortgage Conditions and Mortgage Loan Terms current at the time.
You must confirm to us that title to the new lease is good and marketable in accordance with the CML Lenders' Handbook. . This means that, where appropriate, you must ensure that all usual and necessary searches and enquiries have been made and that our mortgage is registered (where applicable) at the appropriate Land Registry as a first legal mortgage.
What are your requirements in respect of liability for chancel repairs?
As our legal adviser you should be aware of the importance of the decision of the High Court in Aston Cantlow and Wilmcote with Billesley v Wallbank (2003) in which Mr and Mrs Wallbank were ultimately liable for the substantial cost of repairs to the chancel of their parish church.
If your investigation of the title and enquiries reveals an actual liability for chancel repairs, then you must inform us of your findings as this may affect our lending decision. We will need to refer the matter to our valuer for consideration.
You should remember that chancel repair liability affects property in Wales as well as England.
Where there is no indication of a chancel repair liability in the title deeds, it is for you - as our instructed legal adviser - to decide whether a chancel repair liability search (eg. Chancel Check) and/or insurance is necessary in order for you to be able to give an unqualified Certificate of Title.
What are your requirements in respect of option and pre-emption agreements?
Where you act for an existing borrower who wants to enter into an option agreement or pre-emption agreement with a third party - typically a developer - we will usually instruct you to also act for us in approving the agreement. Such instructions will be given on the basis that all legal costs and disbursements you incur in acting for us are payable by the borrower. If we are to give our consent to the agreement, we will require your written confirmation that it will not adversely affect our mortgage security. We will rely on your written confirmation.
If you are unable to act for us or to give this written confirmation, then you must send a copy of the draft agreement to our Group Legal Department for consideration together with a summary of its provisions and your views on it. Group Legal will charge - generally on a time spent basis - for time spent in approving the agreement and for liaising with other relevant departments and individuals such as Customer Services and our Chief Valuation Officer.
We are not usually willing to be a party to any such agreement and consent, if given, will usually be given by way of a separate letter of consent.
To request a Redemption Statement you will need to contact our Customer Services team