Virgin Money

• 1. General
• 2. Communications
• 3. Safeguards
• 4. Valuation of the property
  • 4.1. Valuation
  • 4.2. Re-inspection
• 5. Title
  • 5.1. Surrounding circumstances
  • 5.2. Searches and reports
  • 5.3. Planning and building regulations
  • 5.4. Good and marketable title
  • 5.5. Flying freeholds, freehold flats and other freehold arrangements
  • 5.6. Restrictions on use and occupation
  • 5.7. Restrictive covenants
  • 5.8. First legal mortgage
  • 5.9. Other loans
  • 5.10. Leasehold property
  • 5.11. Management company
  • 5.12. Insolvency considerations
  • 5.13. Powers of attorney
  • 5.14. Energy technologies installed on residential properties
• 6. The property
  • 6.1. Mortgage offer and title documents
  • 6.2. Boundaries
  • 6.3. Purchase price
  • 6.4. Vacant possession
  • 6.5. Properties let at completion
  • 6.6. New properties - Building Standards Indemnity Schemes
  • 6.7. Roads and sewers
  • 6.8. Easements
  • 6.9. Release of retentions
  • 6.10. Neighbourhood changes
  • 6.11. Right of pre-emption and restrictions on resale
  • 6.12. Improvement and repair grants
  • 6.13. Insurance
• 7. Other occupiers
• 8. Separate representation
• 9. Indemnity insurance
• 10. The loan and certificate of title
• 11. The documentation
  • 11.1. The mortgage
  • 11.2. Explanation
  • 11.3. Signing and witnessing of documents
• 12. Instalment mortgages and mortgage advances released in instalments
  • 12.1. Introduction
  • 12.2. Applications for part of the advance
  • 12.3. Requests for intermediate cheques
  • 12.4. Building contract as security
• 13. Mortgage indemnity insurance or high LTV fee
• 14. After completion
  • 14.1. Application to Land Registry of Northern Ireland or Registry of Deeds
  • 14.2. Title deeds
  • 14.3. Your mortgage file
• 15. Legal costs
• 16. Transactions during the life of the mortgage
  • 16.1. Request for deeds
  • 16.2. Further advances
  • 16.3. Transfers of equity
  • 16.4. Properties to be let after completion
  • 16.5. Deeds of variation, rectification, easement or option agreements
  • 16.6. Deeds of postponement or subsititution
• 17. Redemption statement

4.1.1 Check part 2 to see whether we send you a copy of the valuation report or if you must get it from the borrower. If you get a copy of the valuation report from the borrower, we do not expect you to check the content of that report matches the information we hold. For the avoidance of doubt, regardless of where the report is obtained from, you must carry out the checks as detailed in sections 4.1.1.1 and 4.1.1.2.

4.1.1.1 you must take reasonable steps to verify that there are no discrepancies between the description of the property as valued and the title and other documents which a reasonably competent conveyancer should obtain, and, if there are, you must tell us immediately; and

4.1.1.2 you should take reasonable steps to verify that the assumptions stated by the valuer about the title (for example, its tenure, easements, boundaries and restrictions on its use) in the valuation are correct. If they are not, please let us know as soon as possible (see part 2) as it will be necessary for us to check with the valuer whether the valuation needs to be revised. We are not expecting you to assume the role of valuer. We are simply trying to ensure that the valuer has valued the property based on correct information.

4.1.2 We recommend that you should advise the borrower that there may be defects in the property which are not revealed by the inspection carried out by our valuer and there may be omissions or inaccuracies in the report which do not matter to us but which would matter to the borrower. We recommend that, if we send a copy of a valuation report that we have obtained, you should also advise the borrower that the borrower should not rely on the report in deciding whether to proceed with the purchase and that he obtains his own more detailed report on the condition and value of the property, based on a fuller inspection, to enable him to decide whether the property is suitable for his purposes.

5.1.1 Please report to us (see part 2) if the owner or registered proprietor has been registered for less than six months or the person selling to the borrower is not the owner or registered proprietor unless the seller is:

• a personal representative of the registered proprietor; or
• an institutional mortgagee exercising its power of sale; or
• a receiver, trustee-in-bankruptcy or liquidator; or
• developer or builder selling a property acquired under a part-exchange scheme.

5.1.2 If any matter comes to the attention of the fee earner dealing with the transaction which you should reasonably expect us to consider important in deciding whether or not to lend to the borrower (such as whether the borrower has given misleading information to us or the information which you might reasonably expect to have been given to us is no longer true) and you are unable to disclose that information to us because of a conflict of interest, you must cease to act for us and return our instructions stating that you consider a conflict of interest has arisen.

5.2.1 In carrying out your investigation, you must make all usual and necessary searches and enquiries to include searches in the Enforcement of Judgements Office, Bankruptcy Office, Land Registry or Registry of Deeds, Statutory Charges Register and Property Enquiries from the Northern Ireland Housing Executive (in appropriate cases) and the relevant District or Borough Council. An up-to-date search of the Companies Office must also be obtained where applicable. Where the property is registered you must obtain a priority search in which we must be named as the applicant. Where the property consists of unregistered land, you must carry out a search in the Registry of Deeds against all necessary parties on title and after completion carry out a closing search showing the registration of the mortgage granted by the borrower.

5.2.2 In addition, you must carry out any other searches which may be appropriate to the particular property, taking into account its locality and other features.

5.2.3 All searches except where there is a priority period must not be more than six months old at completion. You must be satisfied that you will be able to certify that the title is good and marketable.

5.3.1 You must by making appropriate searches and enquiries take all reasonable steps (including any further enquiries to clarify any issues which may arise) to ensure:

• the property has the benefit of any necessary planning consents; and 
• there is no evidence of any breach of the conditions of that or any other consent or certificate affecting the property (for Building Control Regulations within past 10 years only); and
• that no matter is revealed which would preclude the property from being used as a residential property or that the property may be the subject of enforcement action.

5.3.2 If there is such evidence and the seller (or the borrower in the case of a remortgage) is not providing a sufficient undertaking to satisfy those outstanding conditions by completion, then this must be reported to us (see part 2 ). Check part 2 to see if copies of planning permissions, building control approvals, regularisation certificates and other consents or certificates should be sent to us.

5.3.3 If the property will be subject to any enforceable restrictions, for example under an agreement (such as an agreement under Article 40 of the Planning (Northern Ireland) Order 1991) or in a planning permission, which, at the time of completion, might reasonably be expected materially to affect its value or its future marketability, you should report this to us (see part 2).

5.4.1 The title to the property must be good and marketable, free of any restrictions, covenants, easements, charges or encumbrances which, at the time of completion, might reasonably be expected to materially adversely affect the value of the property or its future marketability (but excluding any matters covered by indemnity insurance) and which may be accepted by us for mortgage purposes. Our requirements in respect of indemnity insurance are set out in paragraph 9. You must also take reasonable steps to ensure that, on completion, the property will be vested in the borrower.

5.4.2 Good leasehold title will be acceptable if:

• a marked abstract of the freehold and any intermediate leasehold title for the statutory period of 20 years before the grant of the lease is provided; or
• you are prepared to certify that the title is good and marketable when sending your certificate of title (because, for example, the landlord's title is generally accepted in the district where the property is situated); or
• you arrange indemnity insurance. Our requirements in respect of indemnity insurance are set out in paragraph 9.

5.4.3 A title based on adverse possession or possessory title will be acceptable if there is satisfactory evidence by statutory declaration of adverse possession for a period of at least 12 years. In the case of lost title deeds, the statutory declaration must explain the loss satisfactorily;

5.4.4 we will also require indemnity insurance where there are buildings on the part in question or where the land is essential for access or services;

5.4.5 we may not need indemnity insurance in cases where such title affects land on which no buildings are erected or which is not essential for access or services. In such cases, you must send a plan of the whole of the land to be mortgaged to us identifying the area of land having possessory title. We will refer the matter to our valuer so that an assessment can be made of the proposed security. We will then notify you of any additional requirements or if a revised mortgage offer is to be made.

5.5.1 If any part of the property comprises or is affected by a flying freehold or the property is a freehold flat, check part 2 to see if we will accept it as security.

5.5.2 If we are prepared to accept a title falling within 5.5.1:

5.5.2.1 (unless we tell you not to in part 2) you must report to us that the property is a freehold flat or flying freehold; and

5.5.2.2 the property must have all necessary rights of support, protection, and entry for repair as well as a scheme of enforceable covenants that are also such that subsequent buyers are required to enter into covenants in identical form; and

5.5.2.3 you must be able to certify that the title is good and marketable; and

5.5.2.4 in the case of flying freeholds, you must send us a plan of the property clearly showing the part affected by the flying freehold. If our requirements in 5.5.2.2 are not satisfied, indemnity insurance must be in place at completion (see paragraph 9).

5.5.3 Other freehold arrangements - unless we indicate to the contrary (see part 2), we have no objection to a 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.

5.5.3.1 If the borrower occupying one of the flats also owns the freehold, we will require our security to be:

• the freehold of the whole building subject to the long leases of the other flats; and
• any leasehold interest the borrower will have in the flat the borrower is to occupy.

5.5.3.2 If another flat owner owns the freehold of the building, the borrower must have a leasehold interest in the flat the borrower is to occupy and our security must be the borrower's leasehold interest in such flat.

5.5.3.3 The leases of all the flats should contain appropriate covenants by the tenant of each flat to contribute towards the repair, maintenance and insurance of the building. The leases should also grant and reserve all necessary rights and easements. They should not contain any unduly onerous obligations on the landlord.

5.5.4 Where the security will comprise:

5.5.4.1 one of a block of not more than four leasehold flats and the borrower will also own the freehold jointly with one or more of the other flat owners in the building; or

5.5.4.2 one of two leasehold flats in a building where the borrower also owns the freehold reversion of the other flat and the other leaseholder owns the freehold reversion in the borrower's flat; check part 2 to see if we will accept it as security and if so, what our requirements will be.

5.7.1 You must enquire whether the property has been built, altered or is currently used in breach of a restrictive covenant. We rely on you to check that the covenant is not enforceable. If you are unable to provide an unqualified certificate of title as a result of the risk of enforceability you must ensure (subject to paragraph 5.7.2) that indemnity insurance is in place at completion of our mortgage (see paragraph 9).

5.7.2 We will not insist on indemnity insurance:

• if you are satisfied that there is no risk to our security; and
• the breach has continued for more than 20 years; and
• there is nothing to suggest that any action is being taken or is threatened in respect of the breach.

5.10.1 Our requirements on the unexpired term of a lease offered as security are set out in part 2.

5.10.2 There must be no provision for forfeiture on the insolvency of the tenant or any superior tenant.

5.10.3 The only situations where we will accept a restriction on the mortgage or assignment (whether by a tenant or a mortgagee) of the lease is where the person whose consent needs to be obtained cannot unreasonably withhold giving consent. The necessary consent for the particular transaction must be obtained before completion. If the lease requires consent to an assignment or mortgage to be obtained, you must obtain these on or before completion (this is particularly important if the lease is a shared ownership lease). You must not complete without them.

5.10.4 You must take reasonable steps to check that:

• there are satisfactory legal rights, particularly for access, services, support, shelter and protection; and
• there are also adequate covenants and arrangements in respect of the following matters, buildings insurance, maintenance and repair of the structure, foundations, main walls, roof, common parts, common services and grounds (the "common services").

5.10.5 You should ensure that responsibility for the insurance, maintenance and repair of the common services is that of:

• the landlord; or
• one or more of the tenants in the building of which the property forms part; or
• the management company - see paragraph 5.11.

5.10.6 Where the responsibility for the insurance, maintenance and repair of the common services is that of one or more of the tenants;

5.10.6.1 the lease must contain adequate provisions for the enforcement of these obligations by the landlord or management company at the request of the tenant.

5.10.6.2 In the absence of a provision in the lease that all leases of other flats in the block are in, or will be granted in, substantially similar form, you should take reasonable steps to check that the leases of the other flats are in similar form. If you are unable to do so, you should effect indemnity insurance (see paragraph 9). This is not essential if the landlord is responsible for the maintenance and repair of the main structure.

5.10.6.3 We do not require enforceability covenants mutual or otherwise for other tenant covenants.

5.10.7 We have no objection to a lease which contains provision for a periodic increase of the ground rent provided that the amount of the increased ground rent is fixed or can be readily established and is reasonable. If you consider any increase in the ground rent may materially affect the value of the property, you must report this to us (see part 2).

5.10.8 You should enquire whether the landlord or managing agent foresees any significant increase in the level of the service charge in the reasonably foreseeable future and, if there is, you must report to us (see part 2).

5.10.9 If the terms of the lease are unsatisfactory, you must obtain a suitable deed of variation to remedy the defect. We may accept indemnity insurance (see paragraph 9). See part 2 for our requirements.

5.10.10 You must obtain on completion a clear receipt or other appropriate written confirmation for the last payment of ground rent and service charge from the landlord or managing agents on behalf of the landlord. Check part 2 to see if it must be sent to us after completion. If confirmation of payment from the landlord cannot be obtained, we are prepared to proceed provided that you are satisfied that the absence of the landlord is common practice in the district where the property is situated, the seller confirms there are no breaches of the terms of the lease, you are satisfied that our security will not be prejudiced by the absence of such a receipt and you provide us with a clear certificate of title.

5.10.11 Notice of the mortgage must be served on the landlord and any management company immediately following completion, whether or not the lease requires it. If you cannot obtain receipt of the notice then, as a last resort, suitable evidence of the service of the notice on the landlord should be provided. Check part 2 to see if a receipted copy of the notice or evidence of service must be sent to us after completion.

5.10.12 We will accept leases which require the property to be sold on the open market if re-building or reinstatement is frustrated provided the insurance proceeds and the proceeds of sale are shared between the landlord and tenant in proportion to their respective interests.

5.10.13 You must report to us (see part 2) if it becomes apparent that the landlord is either absent or insolvent. If we are to lend, we may require indemnity insurance (see paragraph 9). See part 2 for our requirements.

5.10.14 If the leasehold title is registered but the lease has been lost, we are prepared to proceed provided you have checked a Land Registry copy of the registered lease. Whilst this will not be an office copy of the lease you may accept it as sufficient evidence of the lease and its terms when approving the title for mortgage purposes provided it is, on its face, a complete copy.

5.10.15 We will accept a fee farm grant as security provided it meets the provisions of paragraphs 5.10.1 to 5.10.14 inclusive.

5.10.16 You must in relation to any leasehold property or property which is held under a fee farm grant satisfy yourself that the provisions of the Property (Northern Ireland) Order 1997 have been observed and that the creation of that lease and/or fee farm grant is not prohibited by the provisions of that legislation.

5.11.1 In paragraph 5.11 the meanings shall apply: - "management company" means the company formed to carry out the maintenance and repair of the common parts; - "common parts" means the structure, main walls, roof, foundations, services grounds and any other common areas serving the building or estate of which the property forms part. If a management company is required to maintain or repair the common parts, the management company should have a legal right to enter the property; if the management company's right to so enter does not arise from a leasehold interest, then the tenants of the building should also be the members of the management company. If this is not the case, there should be a covenant by the landlord to carry out the obligations of the management company should it fail to do so.

5.11.1.1 For leases granted before 1 October 2004: If the lease does not satisfy the requirements of paragraph 5.11.1 but: you are nevertheless satisfied that the existing arrangements affecting the management company and the maintenance and repair of the common parts are sufficient to ensure the adequate maintenance and repair of the common parts; and you are able to provide a clear certificate of title, then we will rely on your professional judgement.

5.11.2 You should make a company search and verify that the company is in existence and registered at the Companies Office. You should also, where possible, obtain the management company's last three years' published accounts (or the accounts from inception if the company has only been formed in the past three years). Any apparent problems with the company should be reported to us (see part 2). If the borrower is required to be a shareholder in the management company, check part 2 to see if you must arrange for the share certificate, a blank stock transfer form executed by the borrower and a copy of the memorandum and articles of association to be sent to us after completion (unless we tell you not to). If the management company is limited by guarantee, the borrower (or at least one of them if two or more) must become a member on or before completion.

5.12.1 You must obtain a clear search in the Bankruptcy and the Enforcements of Judgements Office against each borrower (and each mortgagor or guarantor, if any) providing us with protection at the date of completion of the mortgage. You must fully investigate any entries revealed by your bankruptcy search against the borrower (or mortgagor or guarantor) to ensure that they do not relate to them.

5.12.2 Where an entry is revealed against the name of the borrower (or the mortgagor or guarantor):

• you must certify that the entry does not relate to the borrower (or the mortgagor or guarantor) if you are able to do so from your own knowledge or enquiries; or
• if, after obtaining office copy entries or making other enquiries of the Official Receiver, you are unable to certify that the entry does not relate to the borrower (or the mortgagor or guarantor) you must report this to us (see part 2). We may as a consequence need to withdraw our mortgage offer.

5.12.3 If you are aware that the title to the property is subject to a deed of gift or a transaction at an apparent undervalue completed within five years of the proposed mortgage then you must be satisfied that we will acquire our interest in good faith and will be protected under the provisions of Articles 312 to 315 and 367 to 369 of the Insolvency (Northern Ireland) Order 1989 or the Insolvency Act (No 2) 1994. If you are unable to give an unqualified certificate of title, you must arrange indemnity insurance (see paragraph 9).

5.12.4 You must also obtain clear bankruptcy searches against all parties to any deed of gift or transaction at an apparent undervalue.

5.13.1 If any document is being executed under power of attorney, you must ensure that the power of attorney is, on its face, properly drawn up, that it appears to be properly executed by the donor and that the attorney knows of no reason why such power of attorney will not be subsisting at completion. Where there are joint borrowers and it is not an enduring power of attorney, the power should comply with section 10 of the Powers of Attorney Act (Northern Ireland) 1971 and neither borrower may appoint the other as his attorney.

5.13.2 A power of attorney must not be used in connection with a regulated loan under the Consumer Credit Act 1974.

5.13.3 Check part 2 to see if:

• the original or a certified copy of the power of attorney must be sent to us after completion;
• where the power of attorney is a general power of attorney and was completed more than 12 months before the completion of our mortgage, you must send us a statutory declaration confirming that it has not been revoked.

5.14.1 Where a property is subject to legal documentation relating to roof space for solar PV panels we require you to check that the documentation meets the UK Finance minimum requirements (Northern Ireland). The minimum requirements include a requirement that the legal documentation is a Lease of Rights and not a lease. Where you consider the minimum requirements are not met check part 2 to see whether you must report this to us and for details of any additional requirements.

5.14.2 If, after completion, the borrower informs you of an intention to enter into legal documentation relating to roof space, you should advise the borrower that they, or the energy technology provider on their behalf, will need to seek consent from us. 

5.14.3 UK Finance has issued a set of minimum requirements where a provider/homeowner is seeking lender consent to enter into legal documentation relating to roof space for solar PV panels. See part 2 for our additional requirements. 

6.1.1 The loan to the borrower will not be made until all relevant conditions of the mortgage offer which need to be satisfied before completion have been complied with and we have received your certificate of title.

6.1.2 You must check your instructions and ensure that there are no discrepancies between them and the title documents and other matters revealed by your investigations.

6.1.3 You should tell us (see part 2) as soon as possible if you have been told that the borrower has decided not to take up the mortgage offer.

6.3.1 The purchase price for the property must be the same as set out in our instructions. If it is not, you must tell us (unless we say differently in part 2). You must tell us (unless we say differently in part 2) if the contract provides for:

• a cashback to the buyer; or
• part of the price is being satisfied by a non-cash incentive to the buyer. This may lead to the mortgage offer being withdrawn or amended.

You must obtain a completed copy of the UK Finance Disclosure of Incentives Form from the conveyancer acting on behalf of the seller of any property that is yet to be occupied for the first time, or for the first time in its current form, for example, because of a renovation or conversion. You should only report incentives to the lender as instructed in Part 2. You will not be able to send a completed Certificate of Title to the lender unless you have received the UK Finance Disclosure of Incentives Form. When you send a completed Certificate of Title you are confirming you are in receipt of a completed UK Finance Disclosure of Incentives Form from the developer/seller’s conveyancer which complies with your instructions. This does not override your duty to the lender via the instructions provided elsewhere in the Lenders’ Handbook. 

6.3.2 You must report to us (see part 2) if you will not have control over the payment of all of the purchase money (for example, if it is proposed that the borrower pays money to the seller direct) other than a deposit held by an estate agent or a reservation fee of not more than £500 paid to a builder or developer.

6.5.1 Where the property, or part of it, is already let, or is to be let at completion, then the letting must comply with the details set out in the mortgage offer or any consent to let we issue. If no such details are mentioned, you must report the position to us (see part 2).

6.5.2 Check part 2 for whether counterparts or certified copies of all tenancy agreements and leases in respect of existing tenancies must be sent to us after completion.

6.6.1 If the property has been built or converted within the past ten years, or to be occupied for the first time, you must ensure that it was built or converted under a new home warranty scheme acceptable to us (see part 2):

6.6.2 Before you send us the certificate of title, you must obtain a copy of a new home warranty provider's cover note from the developer. The cover note must confirm that the property has received a satisfactory final inspection and that the new home warranty will be in place on or before legal completion. This will only apply where acceptance of the contract occurs on or after 1 September 2006. This does not apply to self-build schemes. Check part 2 to see what new home warranty documentation should be sent to us after completion.

6.6.3 We do not insist that notice of assignment of the benefit of the new home warranty agreement be given to the builder in the case of a second and subsequent purchase(s) during the period of the insurance cover. Check part 2 to see if any assignments of building standards indemnity schemes which are available should be sent to us after completion.

6.6.4 Check part 2 to see if we will accept the monitoring of a newly built or newly converted property to be occupied for the first time by a professional consultant. You should ensure that the professional consultant properly completes the lender's Professional Consultant's Certificate or such other form as the instructing lender may provide. The professional consultant should also confirm to you that he has appropriate experience in the design or monitoring of the construction or conversion of residential buildings and has one or more of the following qualifications:

• fellow or member of the Royal Institution of Chartered Surveyors (FRICS or MRICS); or
• fellow or member of the Institution of Structural Engineers (F.I.Struct.E or M.I.Struct.E); or
• fellow or member of the Chartered Institute of Building (FCIOB or MCIOB); or
• fellow or member of the Architecture and Surveying Institute (FASI or MASI) (only if in conjunction with a FCIOB or MCIOB qualification); or
• fellow or member of the Chartered Association of Building Engineers (C.Build E MCABE or C.Build E FCABE); or
• member of the Chartered Institute of Architectural Technologists (MCIAT); or
• architect registered with the Architects Registration Board (ARB). An architect must be registered with the Architects Registration Board, even if also a member of another institution, for example the Royal Institute of Ulster Architects (RSUA); or
• fellow or member of the Institution of Civil Engineers (FICE or MICE).

6.6.5 At the time he issues his certificate of practical completion, the consultant must have professional indemnity insurance in force for each claim for the greater of either:

• the value of the property once completed; or
• '250,000 if employed directly by the borrower or, in any other case, '500,000. You may rely on the information on professional indemnity insurance contained within the Professional Consultant's Certificate so long as you are satisfied that the certificate has been completed and signed by the consultant. If we require a collateral warranty from any professional adviser, this will be stated specifically in the mortgage instructions.

6.6.6 Check part 2 to see if the consultant's certificate must be sent to us after completion.

6.7.1 If the roads or sewers immediately serving the property are not adopted or maintained at public expense, there must be a suitable agreement and bond in existence or you must report to us (see part 2 for who you should report to).

6.7.2 If there is any such agreement, it should be secured by bond or deposit as required by the appropriate authority to cover the cost of making up the roads and sewers to adoptable standards, maintaining them thereafter and procuring adoption.

6.7.3 If there is an arrangement between the developer and the lender whereby the lender will not require a retention, you must obtain confirmation from the developer that the arrangement is still in force.

6.8.1 You must take all reasonable steps to check that the property has the benefit of all easements necessary for its full use and enjoyment. This would include, for example, rights of way (both vehicular and pedestrian), the use of services and any necessary rights of entry for repair. All such rights must be enforceable by the borrower and the borrower's successors in title. If they are not, you must report to us (see part 2).

6.8.2 If the borrower owns adjoining land over which the borrower requires access to the property or in respect of which services are provided to the property, this land must also be mortgaged to us.

6.9.1 If we make a retention from an advance (for example, for repairs, improvements or road works) we are not obliged to release that retention, or any part of it, if the borrower is in breach of any of his obligations under the mortgage, or if a condition attached to the retention has not been met or if the loan has been repaid in full. You should, therefore not give an unqualified undertaking to pay the retention to a third party unless the lender has indicated it may be prepared to release the retention when the borrower is in breach (see part 2).

6.9.2 Check part 2 to se who will release the retention to.

12.1.1 If the cost of the building is to be paid by instalments as work progresses (for example, under a building contract) the amount of each instalment which we will be able to release will be based on a valuation made by our valuer at the time. Whilst we will not be bound by the terms of any building contract we will meet the reasonable requirements of the borrower and the builder as far as possible.

12.1.2 The borrower is expected to pay for as much work as possible from his own resources before applying to us for the first instalment. However, we may, if required, consider advancing a nominal sum on receipt of the certificate of title to enable the mortgage to be completed so long as the legal estate in the property is vested in the borrower.

12.1.3 The borrower is responsible for our valuer's fees for interim valuations as well as the first and final valuations.

14.1.1 You must register our mortgage or charge at the Land Registry of Northern Ireland or the Registry of Deeds as appropriate. If the property is subject to compulsory registration you must attend to this and pay all necessary fees. Before making your application for registration, you must place on your file certified copies of the Land Certificate (or if it is a case of compulsory registration the relevant title deeds) relating to the property, the disposition in favour of the borrower and the mortgage or charge and any vacated charge/mortgage or release from a previous mortgagee.

14.1.2 The application for registration must be received by the Land Registry during the priority period afforded by your original Land Registry search made before completion and, in any event, in the case of an application for first registration, within three months of completion.

14.2.1 All title deeds, searches, enquiries, consents, requisitions and documents relating to the property in your possession must be held to our order and you must not create or exercise any lien over them. Unless otherwise instructed, they must be sent to us (see part 2) with the schedule supplied by us as soon as possible after completion. We expect them to be lodged, in any event, within three months of completion. If it is not possible to return the deeds to us within this period you should advise us in writing with a copy of any correspondence from the Land Registry of Northern Ireland or the Registry of Deeds explaining the delay.

14.2.2 You must only send us documents we tell you to (see part 2). You should obtain the borrower's instructions concerning the retention of documents we tell you not to send us.

14.3.1 For evidential purposes you must keep your file for at least six years from the date of the mortgage before destroying it. You should retain on file those documents as specified in these instructions, and/or our individual instructions, and any other documents which a reasonably competent solicitor/conveyancer would keep. Microfiching, data imaging or material held electronically constitutes suitable compliance with this requirement. It is the practice of some fraudsters to demand the conveyancing file on completion in order to destroy evidence that may later be used against them. It is important to retain these documents to protect our interests. Where you are processing personal data (as defined in the Data Protection Act 1998) on our behalf, you must;

• take such security measures as are required to enable you to comply with obligations equivalent to those imposed on us by the seventh data protection principle in the 1998 Act; and
• process such personal data only in accordance with our instructions. In addition, you must allow us to conduct such reasonable audit of your information security measures as we require to ensure your compliance with your obligations in this paragraph.

14.3.2 Subject to any right of lien or any overriding duty of confidentiality, you should treat documents comprising your file as if they are jointly owned by the borrower and the lender and you should not part with them without the consent of both parties. You should on request supply certified copies of documents on the file or a certified copy of the microfiche to either the borrower or the lender, and may make a reasonable charge for copying and certification.

16.2.1 Our mortgage secures further advances. Consequently, when a further advance is required for alterations or improvements to the property we will not normally instruct a member of our conveyancing panel.

16.2.2 If additional land is to be mortgaged or the further advance is required for some other purpose (for example, to purchase a spouse's equitable or other interest in the property), you may receive instructions to act for us in connection with that transaction.

16.3.1 You must approve the transfer and, if we require, the deed of covenant on our behalf. Check part 2 to see if we have standard forms of transfer and deed of covenant. When drafting or approving a transfer, you should bear in mind:

16.3.1.1 although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage;

16.3.1.2 the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check (see part 2 for where to obtain this);

16.3.1.3 there should be no statement that all interest has been paid to date.

16.3.2 You must ensure that every person who will be a borrower after the transfer covenants with us to pay the money secured by the mortgage, except in the case of:

16.3.2.1 an original party to the mortgage (unless the mortgage conditions are being varied); or

16.3.2.2 a person who has previously covenanted to that effect.

16.3.3 Any such covenant will either be in the transfer or in a separate deed of covenant. In a transfer, the wording of the covenant should be as follows, or as close as circumstances permit: "The new borrower agrees to pay the lender all the money due under the mortgage and will keep to all the terms of the mortgage." If it is in the transfer, you must place a certified copy of the transfer with the deeds (unless we tell you not to in part 2).

16.3.4 If we have agreed to release a borrower or a guarantor and our standard transfer form (if any) includes no appropriate clause, you must add a simple form of release. The release clause should be as follows, or as close as circumstances permit: "The lender releases ... from [his/her/their] obligations under the mortgage." You should check whether a guarantor who is to be released was a party to the mortgage or to a separate guarantee.

16.3.5 You must obtain the consent of every guarantor of which you are aware to the release of a borrower or, as the case may be, any other guarantor.

16.3.6 You must only submit the transfer to us for execution if it releases a party. All other parties must execute the transfer before it is sent to us. See part 2 for where the transfer should be sent for sealing. part 2 also gives our approved form of attestation clause.

16.4.1 If, prior to completion of the retainer, the Borrower informs you of an intention to let the property, you should advise the borrower that any letting of the property is prohibited without our prior consent. If the borrower wishes to let the property after completion then an application for consent should be made to us (see part 2). Check part 2 to see whether it is necessary to send to us a copy of the proposed tenancy when making the application.

16.4.2 If the application for our consent is approved and we instruct you to act for us, you must approve the form of tenancy agreement on our behalf.

16.4.3 Please also note that:

• an administration fee will be payable for our consideration of the application whether or not consent is granted; and
• the proposed rent should cover the borrower's gross mortgage payments at the time; and
• we reserve the right to charge a higher rate of interest to the borrower in certain circumstances or change the terms of the mortgage.

16.5.1 If we consent to any proposal for a deed of variation, rectification, easement or option agreement, we will rely on you to approve the documents on our behalf.

16.5.2 Our consent will usually be forthcoming provided that you first of all confirm in writing to us (see part 2) that our security will not be adversely affected in any way by entering into the deed. If you are able to provide this confirmation then we will not normally need to see a draft of the deed. If you cannot provide confirmation and we need to consider the matter in detail then an additional administration fee is likely to be charged.

16.5.3 Whether we are a party to the deed or give a separate deed or form of consent is a matter for your discretion. It should be sent to us (see part 2) for sealing or signing with a brief explanation of the reason for the document and its effect together with your confirmation that it will not adversely affect our security.