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

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

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

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

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

Leasehold Conditions Please download, complete and return the finalised notices for the transfer, sublease and charge for approval. Notice of Assignment, Sublease and Charge (existing lease and 3-tier transactions) Notice of Sublease and Charge (new lease and 2-tier transactions) Download Download

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

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

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

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

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 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