Monday 11 April 2011

Nat West change P2s relating to Shared Ownership

National Westminster Home Loans have just changed their version of Part 2 of the CML handbook relating to Shared Ownership.

Section 5.18.1 now reads “We do not lend on shared ownership properties. For shared equity and affordable housing you need to notify us (as detailed above in 1.11a) giving details of the proposal.

What do conveyancers do if they have exchanged on such a property and are about to send through their COT ? For what it’s worth, I think a disclosure has to made to the Lender.

Conveyancers should make sure their Terms and Conditions cover this situation. Conveyancers should also consider, in light of the increasing number of P2 changes, to make sure the Contract for Sale is conditional upon lenders not withdrawing their mortgage offer as a result of a P2 change.

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