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  • 16. Policy Exceptions | Gatehouse Bank Handb

    ​ 16. POLICY EXCEPTIONS Any exceptions to this policy must be approved by MCIC. Exception requests should comprise a clear rationale and support from the Banks solicitors. Additionally, these requests should be vetted by Risk and Legal Counsel, before being considered for MCIC submission. ​ Back to Contents ​

  • SDLT | Gatehouse Bank Handb

    SDLT ​ Please download, completed and return the SDLT Declaration signed by your client(s). ​ SDLT Declaration (non-corporate clients only) ​ ​ ​ SDLT Declaration (corporate clients only) ​ ​ ​ Download Download

  • 5. The Documents | Gatehouse Bank Handb

    ​ 5. THE DOCUMENTS 5.1 Original documents All original documents signed by the Client, or any third parties must be provided to the Bank's solicitors at least five business days before completion. 5.2 Additional Documents Documents are sent to the Bank in one pack for execution. Therefore, where additional documents are envisaged (e.g., deeds of covenant, licences, transfers, etc.), execution versions will be required as soon as possible (and no later than seven business days before completion) to ensure there is no delay in arranging execution by the Bank. 5.3 Amendments to Agreements The Agreements are in the Bank's standard form and cannot be negotiated nor amended in any way. 5.4 Witnessing Documents All Agreements are required to be witnessed by an independent, mature, third-party witness with no involvement in the transaction. The Client's Solicitor can witness the documents, but it is not a requirement of the financing that they do so. 5.5 Offer Letter Offer Letters are valid for four months from the date of first issue by the Bank. If an Offer Letter was issued prior to 15th November 2023, it is valid for six months from the date of first issue. Please refer to the offer wording to ensure you advise your client correctly. The Bank will need to obtain credit re-approval to proceed after the offer has expired. You must advise the Bank's solicitors immediately if completion will not be taking place before the offer expires. Back to Contents ​

  • 14. Corporate FAQs | Gatehouse Bank Handb

    ​ 14. CORPORATE FAQs 14.1 Board Minutes and Director's Certificate The Bank's solicitors will provide you with template Board Minutes and Director's Certificate for your review. You must review your client’s articles of association (and memorandum) and amend the templates accordingly. In particular you must amend the provisions relating to any conflicts of interest. 14.2 Copies of the Corporate Authorisations You must provide the Bank's solicitors with a certified copy of the Board Minutes (dated and signed) and the original Director's Certificate. The latter will be dated on completion. Back to Contents ​

  • 8. Insurance | Gatehouse Bank Handb

    ​ 8. INSURANCE 8.1 New Home Warranty Schemes If the property has been constructed or converted in the last 10 years a new build warranty will need to be provided. The following schemes are acceptable to the Bank: a) NHBC; b) Premier Guarantee (Including LABC); c) Building Life Plans (BLP); d) Checkmate; e) Global Home Warranties (GHW); f) International Construction Warranties (ICW); g) Protek; h) Buildzone; i) The Q Policy (Q assure); and j) Advantage HCI. k) FMB Insurance /Build Assure l) One Guarantee m) Ark Residential New Build Latent Defects Insurance n) ABC+ Warranty (10 year structural warranty) o) CGICE (Casualty & General Insurance Company (Europe) Limited ((if the final certificate is dated 04/09/2019 or earlier The limit of indemnity must be for an amount that is not less than 30% of the reinstatement value shown on the Offer Letter. Any other new homes warranty schemes not mentioned in the approved list above will need to be submitted to the Bank's solicitors for approval. A copy of the new build warranty and cover note should be sent to the Bank’s solicitor following completion. 8.2 Indemnity Insurance For any indemnity insurance provided, the limit of indemnity (sum insured) must be the full market value of the property or the purchase price (whichever is higher). Please ensure that copies of all indemnity policies are sent to the Bank’s solicitor following completion. 8.3 Absent or Insolvent Landlords The Bank will accept absent or insolvent landlords subject to Absent landlord insurance and Contingent building insurance are in place. The above is only acceptable if all the following conditions are satisfied: i. the level of cover afforded is for the full market value of the property; ii. the bank’s interest is noted or a general finance providers interest clause is included; iii. the policy contains a non-invalidation provision; and iv. that the solicitor providing the COT considers that the bank’s interest is sufficiently protected by the policy and that the property will continue to have good and marketable title 8.4 Buildings Insurance For freehold and leasehold properties, you must ensure that a valid buildings insurance policy is in place to cover against the Insured Risks and the interest of successors in title/leaseholders noted on the policy schedule for an amount that is not less than the reinstatement value shown on the Offer Letter. The Bank does not require its interest to be noted on the policy. Back to Contents ​

  • 9. Certificate of Title | Gatehouse Bank Handb

    ​ 9. CERTIFICATE OF TITLE (COT) 9.1 Why do you need to provide a COT? One of the Bank's conditions precedents (CPs) for completion is for the Client's Solicitor to provide a signed COT in the form that has been sent to you by the Bank's solicitors. As you are aware, in a conventional setting, you would have the same firm representing client and bank. In the usual way, you would submit a COT to the conventional bank to request drawdown of funds. In Home Purchase Plans and Buy-To-Let Purchase Plans structures, due to the involvement of a lease and the landlord and tenant relationship between the Bank and the Client, each party must be separately represented to avoid any conflicts of interest. Essentially, this is a form of hybrid representation whereby the Bank’s solicitor's involvement is required to ensure compliance with the SRA Code of Conduct as well as monitor satisfaction of the finance CPs in favour of the Bank. The COT will be reviewed by the Bank's solicitors who will prepare an overview report on the security to the Bank including reference to the other documents requested from you. The Bank's solicitors do not undertake any property due diligence nor are they instructed to do so and therefore they cannot and will not provide the COT. 9.2 Who is required to sign the COT? The COT must be signed by a solicitor or Licenced Conveyancer (being a partner employed in your practice) who will be deemed authorised to sign it. Back to Contents ​

  • Document Downloads | Gatehouse Bank Handb

    Documents We Need From You Completion Undertaking COT Letter of Client Advice PG25 Confirmation Letter Documents We Need From Your Client(s) Process Agent Letter Documents We Need About Occupiers and Donors Occupancy Declaration (home purchase/re-finance matters only) Occupier’s Consent (home purchase/re-finance matters only) Occupier's ILA (non-applicant spouses and civil partners only) Donor's ILA (non-applicant spouses and civil partners only) Donor's Consent and Undertaking (non-applicant spouses and civil partners only) Restrictions Certificate of Compliance Template SDLT SDLT Declaration (non-corporate clients only) SDLT Declaration (corporate clients only) Leasehold Conditions Notice of Assignment, Sublease and Charge (existing lease and 3-tier transactions) Notice of Sublease and Charge (new lease and 2-tier transactions) New Build Conditions Certificate of Compliance Template ​ Corporate Customer Conditions Board Minutes (more than one director) Minutes and Resolution (sole director) Directors Certificate (more than one director) Directors Certificate (sole director) Shareholder Resolution - Conflict of Interest (more than one shareholder) Independent Advice Letter – Guarantor Process Agent Letter - Guarantor

  • Documents We Need About Occupiers and Do | Gatehouse Bank Handb

    Documents We Need About Occupiers and Donors ​ If applicable, please download, complete and return the Occupancy Declaration signed by your clients (home purchase/re-finance matters only). ​ ​ ​ ​ If applicable, please download, complete and return an Occupier's Consent, signed by each adult occupier (home purchase/re-finance matters only) . ​ ​ ​ ​ If applicable, please download, complete and return the Occupier's ILA (non-applicant spouses and civil partners only) ​ ​ ​ ​ If applicable, please download, complete and return the Donor's ILA (non-applicant spouses and civil partners only) ​ ​ ​ ​ If applicable, please download, complete and return the Donor's Consent and Undertaking (non-applicant spouses and civil partners only) ​ ​ ​ ​ Download Download Download Download Download

  • 1. Introduction and Purpose | Gatehouse Bank Handb

    ​ 1. INTRODUCTION AND PURPOSE This document has been prepared for the use of conveyancers engaged to act for the Bank’s Clients in relation to Home Purchase Plans (“HPP”) and Buy-To-Let Purchase Plans (“BTLPP”) provided by the Bank. Due to the nature of these products, the Bank will be independently represented by its own solicitors on the finance aspects and management of the Conditions Precedents only. ​ The Bank instructs you for the purposes of and will be relying on your Certificate of Title, which incorporates the Law Society and UK Finance approved Certificate of Title, and you agree to this. The Bank is a member of UK Finance but does not use the UK Finance Mortgage Lenders’ Handbook for Conveyancers (the “Handbook”). ​ This document sets out information regarding the main queries generally raised by conveyancers and which may otherwise have been covered by the Handbook. ​ Please ensure you raise any enquiries with the Bank which would ordinarily be answered within Part 2 of the Handbook. Where a contact point is usually requested under the Part 2 requirements, please refer all enquiries to the Bank's solicitors to review and confirm whether the Bank will agree to proceed. Please assume that the Bank requires instructions to be taken on all matters before you can proceed. ​ Back to Contents ​

  • 3. Diminishing Musharakah Structure | Gatehouse Bank Handb

    ​ 3. DIMINISHING MUSHARAKAH STRUCTURE AND ADVICE 3.1 How will the Bank's financing operate? The Bank’s Home Purchase Plans and Buy-To-Let Purchase Plans use the Diminishing Musharakah financing structure. Under this structure, legal title to the property is transferred to the Bank (from either the seller or the Client). The Bank then becomes the registered proprietor of the Property. Beneficially, the Property will be held in shares by both the Bank and the Client. It is for this reason that the Bank cannot agree to any requests for the beneficial interest to be held on trust for the benefit of anyone other than the Bank and Client in accordance with the Diminishing Musharakah Agreement. The Bank's Initial Share (as at the completion date) will be equal to the Bank's Contribution on completion divided by the Purchase Price (multiplied by 100). This is set out in the Offer Letter. The Bank will simultaneously grant a lease to the Client (for the finance term or 50 years depending on when your offer letter was issued). Under the lease, the Client pays Rent to the Bank each month. Promises to sell and purchase are also contained within the Diminishing Musharakah Agreement which ensures that the Bank is obliged to sell the Property to the Client and the Client is obliged to buy the Property from the Bank by the end of the finance term or early settlement and payment of all sums due. 3.2 Acquisition Payment Profile The Offer Letter notes the Acquisition Structure and Acquisition Payment Profile of each facility. This will be one of the following: a) Acquisition over Finance Term (amortising) The Client must pay Regular Acquisition Payments and Rent each month on the Payment Dates. The Regular Acquisition Payment is a payment towards the Purchase Cost (being the Bank's Contribution). The Rent is the amount calculated in accordance with the Lease (between the Bank and the Client). Each Regular Acquisition Payment causes the Client's Share of the Property to increase and the Bank's Share of the Property to decrease accordingly. b) Acquisition at end of Finance Term (bullet payment) The Client is only required to pay Rent on the Payment Dates. The Purchase Cost (being the Bank's Contribution) shall be payable in full on the Final Completion Date (as defined in the Diminishing Musharakah Agreement). The Client may make Additional Acquisition Payments which are extra payments towards the Purchase Cost as per the Diminishing Musharakah Agreement. Please refer to the Diminishing Musharakah Agreement to determine the restrictions on making such payments. 3.3 Ability to advise the Client on the Finance Documents You must be able to provide a legal advice letter in the form provided to you by the Bank's solicitors. If you are unable to do so, and you remain instructed to deal with the transaction, the Client is required to instruct separate solicitors to advise them on the finance documents and provide the legal advice letter to the Bank's solicitors. You must check the identity of the Client (and anyone else required to sign any deed or other document connected with the mortgage) by reference to the document and notify our solicitors of any discrepancies. 3.4 Legal Advice to the Client Advice to the Client does not need to be given in person however advice should at least be given over the phone. It is your responsibility to check the identity of the Client and ensure that you comply with the Money Laundering Regulations in force as at the date of instruction. You are required to provide the Bank's solicitors with Anti Money Laundering confirmations which are set out in initial correspondence to you. 3.5 Legal Advice to Interested Parties Other Than Guarantors (Donors, Occupiers or other.) For all buy-to-let finances, please refer to the terms and conditions for details as to the types of occupational tenancy agreements acceptable to the Bank. Occupiers (except non-named spouse or civil partner occupiers) For all owner-occupied home purchase plan cases, you must ensure that: All occupiers above 17 years of age (other than the Clients) sign an occupier’s consent form. The occupier’s consent form can be downloaded from the online Solicitors’ Guide and the original signed document must be received by the Bank’s solicitors before funds are requested. Donors (except non-named spouse or civil partner donors) Where any party (other than a Client or Guarantor) is making a financial contribution towards the purchase plan, you must ensure that: Each donor signs a waiver form. The waiver form will be provided by the Bank to the Donor for signing before the Offer is issued. You must also send to the Bank’s solicitors before funds are requested a clear and in-date K17 bankruptcy search against each Donor. Where the search reveals entries, the donor must sign a statement appended to the K18 result confirming none of the entries relate to them. Non-Named Spouse or Civil Partner Occupiers Where the finance offer is not in the joint names of persons who are in a legally sanctioned relationship (i.e., married, in a civil partnership), and the non-named person is going to reside at the property, you must ensure that party: Is provided with independent legal advice by a separate firm (see below). Signs an occupier’s consent form. The occupier’s consent form can be downloaded from the online Solicitors’ Guide and the original signed document must be received by the Bank’s solicitors before funds are requested. Non-Named Spouse or Civil Partner Donors Where the finance offer is not in the joint names of persons who are in a legally sanctioned relationship (i.e., married, in a civil union), and the non-named person is making a financial contribution towards the purchase plan, you must ensure that party: Is provided with independent legal advice by a separate firm (see below). Signs a consent and waiver. You can download the consent and waiver from the online Solicitors’ Guide. Please note the original signed consent and waiver must be received by the Bank’s solicitors before funds are requested. Signs the waiver form provided to the donor by the Bank. You must also send to the Bank’s solicitors before funds are requested a clear and in-date K17 bankruptcy search against each Donor. Where the search reveals entries, the donor must sign a statement appended to the K18 result confirming none of the entries relate to them. Independent Legal Advice for Spouses and Civil Partners Advice should be given face-to-face to ensure that the interested party was advised separately. If, in exceptional circumstances, this is not practical (e.g., where, in the local jurisdiction, legal advisors are not available or willing to act) advice should at least be given over video call or, if a video call is not possible, over the phone. It is the independent adviser's responsibility to check the identity of the interested party and ensure that they comply with the Money Laundering Regulations in force as at the date of instruction. You can download the form of Independent Legal Advice letter from the online Solicitors’ Guide and you must ensure the Bank’s solicitors are in receipt of all required letters of ILA before funds are requested. ​ 3.6 Independent Legal Advice Letter for Guarantors Guarantors must be provided with independent legal advice. ​ If there is more than one Guarantor (or other interested party), advice to each of the Guarantors must be provided separately. The Guarantors' independent adviser can issue one Independent Legal Advice letter covering the fact that they have separately advised each of the Guarantors on entry into both the consent and undertaking waiver letter and the guarantee. ​ Another solicitor/licensed conveyancer in the same firm may be able to advise the Guarantor. 3.7 Subordination of Shareholder/Director Loans There is no requirement for subordination of any shareholder/director or other loans or advances to corporate customers. ​ The Bank does not accept cases where there is an intercompany loan being made to the Customer to fund the Client's Contribution. 3.8 Joint Applicants Bare trust structure, joint borrower sole proprietor or similar arrangements are not acceptable for joint applicants. Back to Contents ​

  • Handbook Contents | Gatehouse Bank Handb

    ​ 1. INTRODUCTION AND PURPOSE 2. DEFINED TERMS AND INTERPRETATIONS (a) Definitions (b) Interpretations 3. DIMINISHING MUSHARAKAH STRUCTURE AND ADVICE 3.1 How will the Bank's financing operate? 3.2 Acquisition Payment Profile 3.3 Ability to Advise the Client on the Finance Documents 3.4 Legal Advice to the Client 3.5 Legal Advice to Interested Parties (Guarantor, Donor or other) 3.6 Independent Legal Advice Letter for Guarantors, etc. 3.7 Subordination of Shareholder/Director Loans 3.8 Joint Applicants 4. LEASEHOLD QUERIES 4.1 Notices to Landlord/Management Company 4.2 Shares in the Freehold/Management Company 4.3 Energy Service Agreements 4.4 Alienation Restrictions in the Superior Lease 4.5 Ground Rent limits 4.6 Seller/Developer Unwilling to Transfer to Bank 4.7 Lease Term 4.8 Leasehold Interest with Freehold Charge 4.9 Enfranchisement 4.10 Building Safety Act 2022 5. THE DOCUMENTS 5.1 Original Documents 5.2 Additional Documents 5.3 Amendments to Agreements 5.4 Witnessing Documents 5.5 Offer Letter 6. FUNDS FLOW 6.1 Finance of Deposit/Balance – Gift/Second Mortgagee 6.2 Funds Held in Joint Account 7. STAMP DUTY LAND TAX (SDLT) AND CAPITAL GAINS TAX (CGT) 7.1 Submitting Returns and Paying SDLT 7.2 SDLT Additional Relief 7.3 SDLT Rebates 7.4 Capital Gains Tax (CGT) 7.5 Tax Planning 8. INSURANCE 8.1 New Home Warranty Schemes 8.2 Indemnity Insurance 8.3 Absent or Insolvent Landlords 8.4 Buildings Insurance 9. CERTIFICATE OF TITLE (COT) 9.1 Why do you need to provide a COT? 9.2 Who is required to sign the COT? 10. DISCLOSURES 10.1 Disclosures to the COT 10.2 Disclosure of Incentives 10.3 Environmental Reporting 10.4 EPC Ratings 10.5 Licences 10.6 HMO Licenses – Refinance 10.7 Title Guarantee 10.8 Unencumbered Title 10.9 Flying Freehold Conditions 10.10 Crisscross Leases (Sometimes known as “Tyneside Leases”) 11. COMPLETION 11.1 Offshore Seller 11.2 Notice of Completion to the Bank 11.3 Funds Remittance – when will they be available? 12. POST COMPLETION 12.1 Registration 12.2 Removal of Security 12.3 Legal Representation on Redemption 13. PROCESS AGENT 13.1 Process Agent 14. CORPORATE FAQs 14.1 Board Minutes and Director's Certificate 14.2 Copies of the Corporate Authorisations 15. SEARCHES 15.1 Does the Bank accept search insurance and, if yes, what are the Bank's specific requirements? 15.2 Does the Bank accept personal searches? 16. POLICY EXCEPTIONS ​ ​ ​

  • 15. Searches | Gatehouse Bank Handb

    ​ 15. SEARCHES 15.1 Does the Bank accept search insurance and, if yes, what are the Bank's specific requirements? Purchases You must commission full searches including local search, LLC1, environmental, drainage and water, highways, flood, chancel and any others flagged by the search provider due to the location of the property (e.g., Crossrail, HS2, Mining, etc.). These searches should be no more than 6 months old on completion other than the local search and LLC1 which should be no more than 3 months old on completion. Search validation insurance will be accepted, if the previous searches were satisfactory and are not more than 3 months beyond the dates specified above for purchases. The indemnity insurance will need to be sent to the Bank's solicitors for approval. Please note the insurance conditions contained below, under the heading Search Insurance Criteria. No search insurance is NOT acceptable for purchases. Refinance/Release of Equity Search validation insurance is acceptable, if the previous searches were satisfactory and they are no more than 12 months old or, in the case of the local land charges search 9 months old, on completion, subject to the policy meeting the insurance conditions contained below, under the heading Search Insurance Criteria. No search insurance is acceptable subject to the policy meeting the insurance conditions contained below, under the heading Search Insurance Criteria. ​ Search Insurance Criteria ​ Where search insurance is acceptable to the Bank as per above, the following conditions must be met: i. the Bank's contribution is less than £1 million for refinances. ii. the Property value is less than £500k for purchases. iii. the Bank is a beneficiary of this indemnity insurance until the bank’s charge is settled; iv. the Client's Solicitor and the Bank’s Solicitor are satisfied that the Bank's interests are adequately safeguarded (at Client's risk); v. the insurance covers all usual searches that would be undertaken (local, land charges, drainage, chancel, environmental, highways, etc.); vi. the insurance provider is authorised by the PRA/FCA to provide such insurance; vii. the sum insured under the policy is an amount that is at least equal to the open market value of the property; viii. the Client’s Solicitor certifies that the title is good and marketable and provides a clear and unqualified Certificate of Title without any disclosures (save with respect to the searches covered by the policy); and ix. all indemnity insurance will need to be sent to the Bank's solicitors for approval. 15.2 Does the Bank accept personal searches? Yes, the Bank will accept personal searches. The search provider must have appropriate professional indemnity insurance in place to cover the value of the property. Back to Contents ​

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