The BSA’s Mortgage Instructions launched today provide a full set of conveyancing instructions for conveyencers acting on behalf of BSA Members and their subsidiaries in residential conveyancing transactions. The Instructions come into full effect from 1 January 2010. The conveyancing Instructions are being used by 31 lenders including 27 building societies.
The BSA Mortgage Instructions comprise of two parts ( as is the case with the CML ) : a core set of mortgage instructions; and specific requirements setting out individual lenders’ policies.
The FAQ's on the BSA site include the following question and answer:
How does the introduction of early completion by the Land Registry affect the use of the instructions in England and Wales?
We have considered the impact of the Land Registry bringing in early completion and do not feel that the change requires any significant amendment to the instructions. This is because early completion does not affect the overall process for buying and selling a home – though it may impact the sequence in which some events happen.
The changes will not alter the requirements set out in paragraph E.27 of the instructions which require the conveyancer to register the mortgage as a first legal charge at the Land Registry.
The Land Registry has confirmed that “completing the applications to register the transfer and new charge subject to the existing charge would not appear to affect the obligations of any party in relation to that existing charge.
Early completion will not prevent the new charge taking effect as a first legal charge; it can never become a first charge until the existing charge is discharged. This is so whether or not the new charge is entered in the register. The entry of the new charge under early completion simply protects the priority of that new charge as against any other interest whose priority is not protected at the time of registration.”
More information on this can be found on the Land Registry's website.
The BSA Mortgage Instructions comprise of two parts ( as is the case with the CML ) : a core set of mortgage instructions; and specific requirements setting out individual lenders’ policies.
The FAQ's on the BSA site include the following question and answer:
How does the introduction of early completion by the Land Registry affect the use of the instructions in England and Wales?
We have considered the impact of the Land Registry bringing in early completion and do not feel that the change requires any significant amendment to the instructions. This is because early completion does not affect the overall process for buying and selling a home – though it may impact the sequence in which some events happen.
The changes will not alter the requirements set out in paragraph E.27 of the instructions which require the conveyancer to register the mortgage as a first legal charge at the Land Registry.
The Land Registry has confirmed that “completing the applications to register the transfer and new charge subject to the existing charge would not appear to affect the obligations of any party in relation to that existing charge.
Early completion will not prevent the new charge taking effect as a first legal charge; it can never become a first charge until the existing charge is discharged. This is so whether or not the new charge is entered in the register. The entry of the new charge under early completion simply protects the priority of that new charge as against any other interest whose priority is not protected at the time of registration.”
More information on this can be found on the Land Registry's website.
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