Author: Simon Seaton

Nationwide Building Society updated three answers in its UK Finance Lenders’ Handbook Part 2 requirements on 21 October 2026. The revised wording addresses valuation assumptions, environmental and property reports, and fire risk assessments for blocks of flats.

For conveyancers, the practical task is to distinguish between matters that require a referral, matters that require advice to the borrower, and information that must be obtained and retained on file. The documents Nationwide wants to receive also differ according to the issue.

This article considers the revised wording supplied for sections 4.1a, 4.3a and 5.4.4a. It does not suggest that every requirement within those answers was introduced for the first time on 21 October. Always check the full current Handbook requirements alongside the mortgage offer and any case-specific instructions.

Valuation assumptions: start with the mortgage offer

Nationwide’s revised answer to section 4.1a explains that a property inspection is not arranged in every case. Where a conveyancer receives a valuation report, it should be used as part of the checks required by sections 4.2 and 4.3.

However, Nationwide expressly instructs conveyancers not to request a copy of the valuation report where one has not been provided.

Instead, Nationwide says that, where possible, assumptions made by the valuer about the property and its title will be shared in the Conditions section of the mortgage offer. Reviewing those conditions should therefore form part of the process for comparing the lender’s assumptions with the legal investigation.

This reinforces the importance of reading the offer and the Handbook together. Our article on the relationship between mortgage documents and conveyancing instructions considers why relying on a single document can leave important requirements overlooked.

When is a further referral unnecessary?

The revised wording in sections 4.1a and 4.3a explains that a further referral is not required where it is evident from the information in the mortgage offer that the valuer has already considered the relevant matter. Nationwide gives ground rent details as an example.

That qualification matters. The exception does not apply where the conveyancer’s investigation reveals:

• Material differences from the information contained in the offer; or
• Additional adverse provisions that were not disclosed within the offer.

The file should record what the offer says, what the investigation established and why a referral was or was not required. A reference to ground rent in the offer should not be treated as blanket approval of every provision in the lease.

For existing owners, lender reporting requirements are only part of the picture. If ground rent is now causing difficulties when selling or remortgaging, When I Bought’s guide to ground rent problems explains why it may be worth reviewing what you were told about the lease during your original purchase.

Environmental reports: distinguish borrower advice from lender reporting

Nationwide’s revised answer to section 5.4.4a says that it does not require environmental or ancillary reports requested for the borrower, including flooding, contamination, energy and infrastructure reports, even where adverse information is revealed, provided the stated conditions are met.

Those conditions include ensuring that the borrower is aware of the issue and has been advised that:

• Full disclosure must be made to the insurer before completion; and
• Insurance must be obtained on normal terms.

This should be read alongside the specific reporting requirements within the same answer. A general statement that environmental reports need not be supplied does not remove the express requirements concerning contaminated land, climate hazards, radon, mining and other listed matters.

Nationwide also says that it does not need to be told that a property is close to HS2. That instruction concerns reporting to the lender. It does not determine what advice the borrower needs about the property.

Which reports and findings need particular attention?

Climate hazards: the borrower still needs the full results

The climate wording distinguishes the information that must be reported to Nationwide from the information that must be given to the borrower.

Where a Climate Hazard Report is obtained, Nationwide says that the borrower must be notified of the results in full and given information about where to seek further information or advice.

Conveyancers should therefore avoid treating the lender’s reporting threshold as the boundary of their communication with the client. A finding that does not meet Nationwide’s referral criteria may still need to be explained to the borrower.

The wording refers to a report requested by the borrower. It should not be presented as imposing a universal requirement to obtain a Climate Hazard Report on every Nationwide transaction. For the wider purchase-advice context, see our article on climate risk and the advice given when buying a property.

Mundic reports: check the postcode, construction date and classification

Nationwide sets out specific instructions for properties in the following postcode areas:

PL10, PL11, PL12, PL13, PL14, PL15, PL16, PL17, PL18, PL22 and PL23.

For a property in one of those areas, the borrower must be asked whether they have a Mundic Report. Where a report exists, the classification determines the next step:

• A classification: confirm that the report provides an A certification, including classifications such as A1 or A2.
• A/B classification: refer the matter to the issuing office.
• B or C classification: Nationwide’s wording says these must be declined.

If the borrower does not have a Mundic Report and the property was built before 1965, refer the matter to the issuing office and await further instructions.

Blocks of flats: establish whether the fire risk assessment is current

For security situated in a block of flats, Nationwide requires information about the contents of the most recent Fire Risk Assessment, or FRA.

The conveyancer must obtain confirmation from the managing agent, freeholder or Principal Accountable Person that the FRA remains in date. Nationwide explains this by reference to the recommended review or reinspection date: that date must not already have passed.

The revised wording says that a block without a current, in-date FRA is unacceptable. It also says that, where the block is required to have an FRA but does not have one, the case is unacceptable and must be declined. A promise that an assessment will be commissioned should not be treated as satisfying the requirement.

Outstanding FRA recommendations require further investigation

Conveyancers must also ask whether any recommended works remain outstanding. Where they do, obtain:

• Full details of the outstanding recommendations;
• The anticipated timescales for completing the work; and
• Details of any costs to be met by the leaseholder.

That information must then be referred to the issuing office for review.

Nationwide expressly says not to send a copy of the FRA. This contrasts with a reportable Climate Hazard Report, where the entire report must be appended. A standard process of sending every underlying report to the lender would therefore fail to reflect the different instructions.

If you already own a flat and fire safety or cladding issues are now affecting a sale or remortgage, visit When I Bought’s guide to cladding and building safety problems. The documents and advice provided when you bought may be relevant, although a problem arising today does not, by itself, establish that the original conveyancing advice was inadequate.

Allow at least two weeks before exchange for lender enquiries

The revised answers to sections 4.3a and 5.4.4a repeat Nationwide’s instruction that all lender enquiries must be submitted with the full documentation and requirements at least two weeks before exchange, allowing time for review and decision-making.

For firms, this means identifying referral points early enough to obtain the necessary information before the proposed exchange date. An incomplete enquiry may leave the lender unable to make a decision within the intended timetable.

The two-week period is not a guarantee of approval or a promise that every enquiry will be resolved within that time. Nor should a portal acknowledgement or the passage of time be treated as consent. Our article on why a lender portal acknowledgement is not approval explains the importance of recording the actual decision.

The same timing requirement also appears in the Nationwide lease extension wording discussed in our October update on Nationwide’s lease extension requirements.

Turn the revised wording into practical file checks

A useful review of an affected Nationwide purchase file should establish:

1. Whether the Conditions section of the offer records relevant valuation assumptions.
2. Whether the legal investigation reveals material differences or additional adverse provisions.
3. Which findings require borrower advice, lender referral or both.
4. Whether a valid EPC is on file before exchange for a purchase application.
5. Whether any relevant Mundic, mining, radon or climate reporting requirement has been addressed.
6. For a flat, whether the FRA is current and whether outstanding recommendations require a referral.
7. Whether each enquiry includes the required information and has been submitted at least two weeks before exchange.
8. Whether any necessary lender decision has actually been received and recorded.

The aim is to make the reasoning visible on the file. A colleague reviewing the matter should be able to understand what was checked, what the client was told, what was reported and what Nationwide decided.

Reviewing an earlier transaction? Check the instructions from the relevant date

The revised wording is relevant to the handling of current transactions. It should not be used on its own to judge what a conveyancer was required to do on a purchase completed years earlier.

Where the question concerns an earlier Nationwide mortgage, consult the Lexsure Lender Archive for Nationwide Building Society to investigate the historical Part 2 requirements.

The dated lender instructions are one part of that review. The mortgage offer, case-specific correspondence, transaction documents and advice actually given also need to be considered. An archive record does not, by itself, establish compliance or a breach.

This article summarises selected wording supplied for Nationwide Building Society’s Part 2 update dated 21 October 2026. It is not a substitute for checking the complete current UK Finance Lenders’ Handbook, the mortgage offer and any case-specific instructions.