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

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

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. 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; and 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). 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

Restrictions If required, please use the certificate of compliance template below. Download

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

2 DEFINED TERMS AND INTERPRETATIONS (a) Definitions i. "Bank" means Gatehouse Bank PLC of The Helicon, 1 South Place, London, EC2M 2RB; ii. "Client" means the corporate entity or individual(s) to whom the Offer Letter is addressed; iii. "Client Solicitor" or "You" mean the solicitors or licensed conveyancers appointed to act for the Client; and iv. "Diminishing Musharakah Agreement" means the diminishing musharakah agreement to be entered into between the Client and the Bank as provided to you. (b) Interpretations i. Unless otherwise defined in this deed, a term defined in the Diminishing Musharakah Agreement has the same meaning when used in this document. ii. The guidance contained in this information sheet is intended to assist you in satisfying all conditions with the Bank and the Bank's solicitors and does in not in any way limit or reduce your responsibilities either to the Bank or the Bank's solicitors. iii. You must be regulated by the Solicitors Regulation Authority or the Council for Licensed Conveyancers and have professional indemnity insurance. If your professional indemnity insurance is less than the Bank's Contribution, please advise the Bank's solicitors immediately. iv. You must advise the Bank's solicitors immediately upon any matter arising which may adversely affect the good and marketable title to the Property and in your professional opinion will be considered to affect the Bank's interest in the Property. v. In any case where you are unable to continue to act for the Client, you must advise the Bank's solicitors immediately and return all documents held by you. Back to Contents

New Build Conditions If required, please use the certificate of compliance template below. Download

5. THE DOCUMENTS 5.1 Original documents Certified copies of 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. You will need to retain the original finance documents signed by your Client for your Land Registry applications. 5.2 Additional Documents 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 Electronic Signatures The finance documents may be signed electronically by your Client, provided you are satisfied the requirements of HM Land Registry Practice Guide 82 (PG82) have been complied with in full, and you execute a certificate in the form provided in PG82 to confirm the conditions have been met. The finance documents will be executed by the Bank electronically, and the Bank’s solicitors will provide to you via email on completion the signed finance documents, together with a PG82 certificate and certified copy power of attorney under which the finance documents have been executed. 5.6 Offer Letter Offer Letters are valid for four or six months from the date of first issue by the Bank. 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

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

6. FUNDS FLOW 6.1 Finance of Deposit/Balance – Gift/Second Mortgagee Please confirm expressly if the Client will be obtaining funds from another third party to either pay for the deposit (if any) or fund the balance required to purchase or refinance the property. If funds were or are being gifted from another source, the Bank's solicitors will require a Gift Letter (setting out the details of the gift and confirmation that the donor will not acquire any interest in the property) to be signed. The donor, as an interested party, may also need to be independently advised. Please see paragraph 3.5 above for cases where independent legal advice is required. The Bank will not agree to the involvement of another financial institution in financing or taking over the property or the grant of a second charge. Please ensure that you obtain a clear bankruptcy search and insolvency act indemnity insurance policy against the donors of any gifts before completion. 6.2 Funds Held in Joint Account Funds held in the joint account used to fund the Client’s Contribution are not considered as gifted deposit. However, the Joint account holder(s) must sign a waiver of interest/ rights form but are not required to be provided with independent legal advice unless the circumstances at 3.5 apply. Back to Contents

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

10. DISCLOSURES 10.1 Disclosures to the COT If the Client's Solicitor wishes to disclose any issues, then the Client's Solicitor should set out such issues in a disclosure letter appended to the COT. The Bank's solicitor will then refer these matters to the valuer for confirmation that the valuation remains unaffected considering the disclosures. 10.2 Disclosure of Incentives Please ensure you report on all incentives and provide a disclosure form substantially similar to the UK Finance Disclosure Form to be referred to the valuer. 10.3 Environmental Reporting If the contents of the environmental report or contamination report you have commissioned is likely to affect the Bank's security, the Bank's solicitors will require a copy to be provided to them as a disclosure to the COT. 10.4 EPC Ratings All the security properties must meet minimum EPC rating threshold of ‘E’. 10.5 Licences a) Buy-to-Let Purchase Your Client is responsible for ensuring any mandatory, additional/discretionary, selective or other licence required to let the Property is in place before the Property is occupied by tenants. b) Buy-to-Let Refinance You must satisfy yourself that either: i) Any licence required to let the Property is in place on completion, or ii) Where a licence other than an HMO licence is required but is not currently in place, you are satisfied an appropriate application for the required licence has been made by your Client before completion. 10.6 HMO Licenses – Refinance Bank solicitors will require a confirmation that the property has a valid HMO license before completion. 10.7 Title Guarantee The Property must be transferred to the Bank with full title guarantee. Limited title guarantee is acceptable in some instances whereby the seller cannot provide full title guarantee (e.g., where probate sale or the seller lacks capacity or is a mortgagee in possession), provided an indemnity policy in place protecting the Bank's interest. 10.8 Unencumbered Title On completion, the Bank must obtain unencumbered title to the property and to any other Bank’s interest forming part of the Bank’s security under the Transaction. Accordingly, any existing charge affecting the property (including under a debenture, or a fixed or floating charge) must be released on or before completion. If your client is a corporate entity that has previously granted a floating charge over its assets, you must: 1. Prior to completion, provide our solicitors with the following for approval: a) A draft letter of non-crystallisation relating to the floating charge; and b) If the debenture establishing the floating charge includes a negative pledge, a signed and dated letter of consent from the existing facility provider confirming their agreement to our charge. 2. On the day of completion, before releasing funds, you must obtain from the existing facility provider a signed and dated letter of non-crystallisation in the form approved by our solicitors. 10.9 Flying Freehold Conditions If the Property is a flying freehold, please advise the Bank's solicitors immediately. The Bank will require the following conditions to be met: a) the Client's solicitor or the valuer should confirm what percentage of the floor area will be affected by the flying freehold – this will determine whether the Bank can agree to lend or not; b) assuming the Property is not yet split, the transfer of the freehold property must have all necessary rights of support, protection, and entry for repair. The Client's solicitor must also provide confirmation of how the Property is accessed, i.e. does it have a separate access way, etc.; c) the Property must have enforceable restrictive and positive covenants that are also such that subsequent buyers are required to enter into covenants in identical form (since positive covenants do not run with the land). This will include ensuring that there is an adequate restriction placed on both freehold titles for Deeds of Covenant to be entered into by successors in title; d) the Client's solicitor should ensure an appropriate flying freehold indemnity insurance is placed on risk on completion; and e) the Client's solicitor will need to certify that the Property has good and marketable title. 10.10 Crisscross Leases (Sometimes known as “Tyneside Leases”) In circumstances where the Bank is financing one of two leasehold flats in a building where the Client holds the leasehold to one flat and the freehold reversion of the second flat and the other leaseholder owns the leasehold to the other flat and the freehold reversion in the Client’s flat, we require both the leasehold and freehold titles held by the client to be transferred to the Bank. Back to Contents