Paragon Buy to Let Mortgages

Transcription

1 Paragon Buy to Let Mortgages < Back to handbook selection Part 1: England and Wales Last modified: 01/07/2017 Part 2: Paragon Buy to Let Mortgages Last modified: 09/10/2017 Print PDF Part 2 only 1.7 Contact point to see if the lender will lend when borrower and mortgagor are not one and the same. N/A. We do not lend in these circumstances. 1.11aContact point for standard documents. Your specific attention is drawn to the Supplemental Instructions and Guidance Notes to Solicitors sent to you with our documentation. These replies apply unless our offer states otherwise. The contact details are: The Mortgage Completions Department Paragon Buy to Let mortgages, 51, Homer Road, Solihull, B91 3QJ Telephone (option 2), fax number MDX Solihull bContact point if standard documents are inappropriate May your firm act if the person dealing with the transaction or a member of his immediate family is the seller? No

2 1.15 May your firm act if the person dealing with the transaction or a member of his immediate family is the borrower? You may not act if the person dealing with the transaction or a member of his immediate family is the Borrower, a guarantor or a director, shareholder or officer of the Borrower without our express authority in writing. If we do consent, the person acting for us must be a partner and have more seniority than the person acting for the Borrower, guarantor etc Does the lender require notification of the name and address of the solicitors firm or licensed conveyancers firm acting for the seller? Yes If different from 1.11, contact details if the lender needs to be notified when the seller does not have legal representation What other documents are acceptable for verifying identity? We do not supply a prescriptive list. You should ensure that you are happy that you have satisfied your obligations for the verification and identity of the Borrower/signatory and keep a certified copy of any documentation upon which you have relied on your file Does the lender require notification of the name and address of the solicitors firm or licensed conveyancers firm acting for the seller? Yes If different from 1.11, contact details if the lender needs to be notified when the seller does not have legal representation. 4.1 Is there a valuation report and if so, does the lender provide it? Yes. You should ensure that you inform the Borrower that any valuation report is for our purpose only and must not be relied upon by the Borrower. The Borrower should be advised of the importance of instructing his own surveyor with suitable qualifications to conduct a survey for his purposes. 4.3 If different from 1.11, contact point if assumptions stated by the valuer are incorrect. 4.5aIf different from 1.11, contact point if re-inspection required.

3 4.5bWhere should the certificate of title be sent? If different from 1.11, the contact point if the seller has owned the property for less than 6 months: Your specific attention is drawn to our Supplemental Instructions and Guidance Notes If different from 1.11, the contact point if the seller is not the owner or registered proprietor and is not listed in the exceptions above: Does the lender want to receive environmental or contaminated land reports? Yes, you must carry out contaminated land searches and environmental searches appropriate to the Property, its location and any use or former use of the land on which it is situate Does the lender accept personal searches and, if yes, what are the lender's requirements? No Does the lender accept search insurance and, if yes, what are the lender's specific requirements? For remortgages of single self-contained units, search insurance is acceptable for local authority searches only. This is provided that the local authority search insurance adequately protects us and you are satisfied that you can certify that the title is good and marketable and provide us with an unqualified Report on Title. NOT ACCEPTED ON:- (1) Houses in multiple occupation. (2) Multi unit building. (3) Purchases of any property type. (4) Any other searches. If you are in any doubt as to whether search insurance is acceptable to us, please contact us on the details provided in 1.11a aIf different from 1.11, contact point for reporting if evidence of breach and all outstanding conditions will not be satisfied by completion: 5.5.3bDoes the lender require an original/copy of the planning permission? Yes, please place originals with the deeds. Where the property is a House in Multiple Occupation copies will need to be provided prior to release of funds.

4 5.5.3cDoes the lender require an original/copy of the building regulation consents? Yes, please place originals with the deeds. Where the property is a House in Multiple Occupation copies will need to be provided prior to release of funds dDoes the lender require certificates of lawful use or development/established use certificate? Yes, please place originals with the deeds. Where the property is a House in Multiple Occupation copies will need to be provided prior to release of funds If different from 1.11, contact point if the property is subject to restrictions which may affect its value or marketability aDoes the lender lend on flying freeholds? No, but we may be prepared to lend if a small or immaterial part of the property comprises or is affected by a flying freehold such as an alleyway between two terraced properties, which may be common in some parts of England and Wales bDoes the lender lend on freehold flats? No 5.7.1cIf the lender is prepared to accept a title falling within 5.7 and the property is a freehold flat or flying freehold, to which contact point must this be reported? Does the lender accept security which comprises a building converted into not more than four flats where the borrower occupies one of those flats and the borrower or another flat owner also owns the freehold of the building and the other flats are subject to long leases? Please see our Supplemental Instructions and Guidance Notes Does the lender accept security which comprises one of two leasehold flats in a building where the borrower also owns the freehold reversion of the other flat and the other leaseholder owns the freehold reversion in the borrower's flat? If so, are there any specific requirements? Yes, subject to the leasehold and freehold interests owned by the borrower being charged to us. You must also ensure that the criss-cross Tyneside leasehold arrangements have been set up correctly and the correct interests in land are agreed by the borrower and charged to us to ensure that our title is good and marketable.

5 5.9.1 Does the lender lend on commonhold? No If different from 1.11, contact point if there is a restriction on use If different from 1.11, contact point if borrower is not providing balance of purchase price from funds/proposing to give second charge. We do not consent to second charges. The balance of the purchase price must pass through your client account What minimum unexpired lease term does the lender accept? The unexpired term of the lease must have a minimum of 85 years at the commencement of the mortgage term and a minimum unexpired lease term of 65 years must remain at the end of the mortgage term If different from 1.11, contact point for matters connected with the lease: If different from 1.11, contact for service charge matters: Does the lender accept indemnity insurance where the terms of the lease are unsatisfactory? Please refer defect and your recommendation/advice to the contact point in 1.11a Does the lender require a clear ground rent/service charge receipt to be sent to you? Yes, please place with deeds. Please see our Supplemental Instructions and Guidance Notes Does the lender require a receipted copy of notice or evidence of service to be sent to you? Yes, please place with deeds aIf different from 1.11, contact point if there is an absentee/insolvent landlord:

6 bDoes the lender accept indemnity insurance if the landlord is absent or insolvent? Generally no, but:- 1. Where the security comprises a house we may be prepared to accept a suitable indemnity policy if the landlord is absent or insolvent where the lease term is a long lease such as 999 years or similar. 2. Where the security comprises a flat please refer the matter to the contact details in 1.11a aIf different from 1.11, contact point if there are apparent problems with the management company: bDoes the lender need to be sent the management company share certificate? Yes, please place with deeds cDoes the lender need to be sent the signed blank stock transfer form? Yes, please place with deeds dDoes the lender need to be sent the management company's memorandum and articles of association? Yes, please place with deeds If different from 1.11, contact point if unable to certify search entry does not relate: As 1.11a aDoes the lender need to be sent the power of attorney? A power of attorney must not be used for the execution of our documentation (including but not limited to the Legal Charge and any supporting Deed of Guarantee). Where any other documents have been executed under a power of attorney with our prior consent in writing, please include a certified copy with the deeds bDoes the lender need to be sent the statutory declaration of non-revocation of power of attorney? A power of attorney must not be used for the execution of our documentation (including but not limited to the Legal Charge and any supporting Deed of Guarantee). Where any other documents have been executed under a power of attorney falling within clause nd bullet point with our prior consent in writing, please include either the original or a certified copy of the statutory declaration of non-revocation of the power of attorney If different from 1.11, contact point for lending on affordable housing, shared equity and shared ownership and where relevant your requirements: N/A. We do not lend on these. We also do not lend on properties that were formerly shared ownership, even where 100% staircasing has taken place.

7 Does the lender require me to report to them where the lease does not meet the UK Finance minimum requirements for leases of roof space for solar PV panels? We do not lend on properties that are subject to a lease of roof space for solar panels. You must report the ownership/ lease arrangements for any such panels at the earliest opportunity as the offer will be withdrawn unless the ownership arrangements are acceptable to us and the solar panels are owned outright by the borrower Does the lender have additional requirements relating to leases of roof space for solar PV panels, and if so, what are they? Not applicable. Please see answer to Does the lender require you to disclose the details of any existing Green Deal Plan(s) on a property? Yes. Please provide full details including:- Confirmation of the Green Deal loan balance outstanding; monthly payment; term remaining; list of works undertaken; copies of any guarantees for the work and a copy of the Energy Performance Certificate. DO NOT PROCEED UNTIL WE HAVE CONFIRMED THAT YOU MAY DO SO If different from 1.11, contact point if borrower is not taking up the mortgage offer: If different from 1.11, contact if any discrepancies in property's description: If different from 1.11, contact point for any issues relating to purchase price: See also our Supplemental Instructions and Guidance Notes Does the lender require me to report incentives? Yes. You must provide the UK Finance Disclosure of Incentives form to us, prior to submission of your ROT. See also our Supplemental Instructions and Guidance Notes If different from 1.11, contact point if we will not have control over the payment of all the purchase money: See also our Supplemental Instructions and Guidance Notes If different from 1.11, contact point if vacant possession is not being given:

8 6.6.1 If different from 1.11, contact point if property is let/to be let and to check you lend on buy-to-let: See also our Supplemental Instructions and Guidance Notes, together with our Mortgage Conditions and General and Special Conditions accompanying our Offer If different from 1.11, contact point when you do not have details of current letting or letting to take place at completion: See also our Supplemental Instructions and Guidance Notes, together with our Mortgage Conditions and General and Special Conditions accompanying our Offer Does the lender require counterpart/certified copy tenancy agreement to be sent to you? Yes - please place with deeds Does the lender lend where the property comes within the definition of a house in multiple occupation? If yes, what are your requirements? Yes, all of the requirements specified in the offer must be satisfied prior to the submission of your ROT What new home warranty schemes are acceptable to the lender? NHBC, LABC, Build Assure, Build Life Plans, Build Zone, Castle 10 CRL Management Limited, Premier Guarantee, Protek and Zurich Municipal. Where the Property comprises a flat within a building, these warranties must also be available for all common parts (including the structure) of the building prior to completion of the loan What new home warranty documentation should be sent to the lender? All of the relevant documentation in respect of the scheme Should any assignments of building standards indemnity schemes be sent to us? Yes, please place with deeds Will the lender proceed if the property does not have the benefit of a new home warranty scheme? Yes. Where the Property comprises a flat within a building, the Professional Consultant s Certificate must also be available for all common parts (including the structure) of any building prior to completion of the loan Does the lender need to be sent the professional consultant's certificate? Yes

9 6.8.1 If different from 1.11, contact point if no agreement and bond for an unadopted road or sewer: If different from 1.11, contact point if necessary easements are absent: The solicitor must ensure that the Property enjoys full rights (both pedestrian and vehicular) over any access (private or otherwise) leading to the Property and any areas connected with its enjoyment (for example, but not limited to, car parking areas, separate garage, garden areas). The solicitor must also ensure there are adequate covenants and arrangements in respect of the repair and maintenance of any access or services to the Property and report if any such maintenance liabilities are in excess of 250 per annum in addition to any annual service charge there may be Who will the lender release any retentions (or instalments of the advance) to? Borrower, or you, depending on circumstances If different from 1.11, contact point if property is affected by redevelopment or road proposals: If different from 1.11, contact point if pre-emption rights, resale restrictions, options etc will affect the lender's security: If different from 1.11, contact point if property is affected by improvement/repair grant which will not be discharged: 7.3 Does the lender require a consent to mortgage from all occupants aged 17 or over? We only provide funding for buy to let properties. The only persons permitted to be in occupation on or after completion of our loan are those who meet our criteria on letting specified in our Mortgage Conditions, General Conditions and offer. 7.4 If different from 1.11, contact point if doubts about accuracy of information disclosed: In all cases, where you have reason to doubt the accuracy of any information disclosed you should report to us as the borrower has waived his right to confidentiality and privilege in his application for the loan. 8.1 Does the lender allow me to advise any of the specified third parties? See our Supplemental Instructions and Guidance Notes.

10 9.1 Does the lender need to be sent the indemnity insurance policy? Yes, include with the deeds. 9.2 What limit of indemnity insurance does the lender require? An amount at least equal to the stated value of the Property. 10.2aWill the mortgage advance be paid electronically or by cheque? Electronically 10.2bWhat is the minimum number of days notice lenders require? Seven working days, 10 working days where a reinspection or revaluation report is required What are the standard deductions made from the mortgage advance? As detailed in the offer On a delayed completion, when and how is advance to be returned? By CHAPS within one working day of delay to the bank detailed on the offer. Please ensure that the borrowerâ s name and mortgage account number are quoted If different from 1.11, contact point if completion is delayed? How long can you hold the mortgage advance before returning it? Mortgage advance must be used on completion date notified to us What, if any interest does the lender charge if return of the advance is delayed? At the mortgage rate for the advance from date of advance If different from 1.11, contact point for release of retentions/mortgage advance instalments: Does the lender require me to make a form CH2 application? No

11 Does the lender need to be sent the original mortgage deed and/or any other original title documents? We require all original deeds to be sent to us, including the legal charge, and official copies of the registers of title and filed plan and where applicable, the lease; deeds of guarantee; certificates of confirmation of advice; certificate of registration at Companies House for the Legal Charge and the Floating Charge, UK Finance Disclosure of Incentives form and all other documents to support a good and marketable title such as all necessary planning documentations Where should the title deeds and documents be sent? The Securities Department, Paragon Buy to Let Mortgages, 51 Homer Road, Solihull, West Midlands B91 3QJ, MDX Solihull Which documents must I send after completion? All the deeds and documents referred to in together with the Legal Charge, the lease (if any) and all other title deeds and documentation necessary to support a good and marketable title. In addition, you must send to us any Deed of Guarantee; Certificates of Confirmation of Advice; certificates of registration at Companies House for the Legal Charge and Floating Charge and UK Finance Disclosure of Incentives Form If different from 1.11, contact point for title documents: The Securities Department Paragon Buy to Let Mortgages, 51 Homer Road, Solihull, West Midlands B91 3QJ, telephone number , fax number , MDX Solihull Does the lender have a standard form of transfer/deed of covenant? No If different from 1.11, contact point for finding out the debt amount: First Mortgage Customer Services, Paragon Buy to Let Mortgages, 51 Homer Road, Solihull, West Midlands B91 3QJ, telephone number , fax number MDX Solihull Does the lender need to be sent the transfer of equity? Yes, certified copy to be included with deeds aIf different from 1.11, contact point for obtaining execution of transfer equity: bWhat form of attestation clause does the lender use? Executed as a deed by Paragon Finance PLC acting by two authorised signatories as attorney for [insert name

12 of lender] Signature Authorised signatory Signature Authorised signatory If different from 1.11, contact point for application for consent to letting: N/A Does the lender need to be sent a copy of the proposed tenancy? N/A If different from 1.11, contact point for confirming proposed deed or agreement will not adversely affect the lender: aWhere should the deed of variation be sent? bWhere should the deed of rectification be sent? cWhere should the deed of easement be sent? dWhere should the option agreements be sent? If different from 1.11, contact point for redemption statements: aWhere do you send the discharge and repayment remittance? As advised on redemption statement.

13 17.2.1bDoes the lender send the discharge via a DS 1 form or direct with the Land Registry? e-ds1