A Precise Approach to Builders' Deposits

Lawyers on the Precise Mortgages Conveyancing Panel should note recent amendments to three key sections of the lender’s Part 2 requirements:

• Incentives (Paragraph 6.4.4): Precise has updated its list of unacceptable incentives. Under the amended rule, unacceptable incentives include vendor deposits, discounted purchase prices, purchases from family at a discount, purchases from a company in which the borrower holds an interest, and builders’ deposits (except for non-buy-to-let residential purchases, where builders’ deposits of up to 5% of the purchase price remain acceptable). The remainder of section 6.4.4 is unchanged.

• Lease Terms (Paragraph 5.14.1): Updates have been made regarding the minimum unexpired lease term requirement. In other words whether there is a short lease requiring a lease extension.

• CH2 Applications (Paragraph 14.1.4): Rules surrounding CH2 application requirements have been revised.

For the latest official details and updates, panel conveyancers can check the LenderPanel – Precise Mortgages Solicitor Panel directory.