HSBC have just made important changes to their CML Handbook Part II instructions. An amendment to section 5.8.1 means that they will no longer 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.
Historical context: This article records a September 2016 change concerning converted buildings and ownership of the freehold. When reviewing an earlier HSBC-funded purchase, establish the instructions applicable to that particular transaction rather than relying on today’s wording. Our HSBC Lender Handbook Archive guide explains how to identify the correct lender record and relevant historical date.
The change can be accessed via the Lexsure Lender Handbook Archive for HSBC
It has been a very busy week for lenders making changes to their instructions to lawyers .
The lenders who have made changes this week include:
Ipswich Building Society
Skipton Building Society
Aldermore Bank PLC
Cambridge Building Society
HSBC
Monmouthshire Building Society
National Westminster Bank
Santander
Alliance & Leicester mortgages
RBS
West Bromwich Building Society
West Bromwich Mortgage Company
Leek United Building Society
If you are arranging a new purchase or remortgage with HSBC, this historical change does not establish whether your chosen conveyancer can act today. Our guide to choosing an HSBC panel conveyancer explains why you should check the relevant office and obtain written confirmation before committing to legal fees.
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