Following consultation with the Law Society, solicitor firms and licensed conveyancers, the Council of Mortgage Lenders has decided to introduce five further amendments to the CML Lenders' Handbook dated July 1999.

These amendments are aimed at making the instructions set out in the handbook clearer and take into account recent changes in legislation.

The amendments will apply to new instructions received on or after 1 June 2000 and:-- Deal with the situation where confirmation of payment of ground rent from the ground landlord cannot be obtained but where the lender's security will not be prejudiced by the absence of the receipt and there has been no breach of the terms of the lease (paragraph 5.10.8);-- Set out what interest in land a management company should have where the company is required to maintain or repair a leasehold property (paragraph 5.11.1);-- Recognise the changes to s25 of the Trustee Act 1925 by s7 of the Trustee Delegation Act 1999 and that a joint borrower cannot appoint the other as his attorney (paragraph 5.13.1);-- Allow for the monitoring of the development of a new property by a professional consultant employed by the builder and/or developer and requires the consultant to complete a Professional Consultant's Certificate (paragraph 6.6.1.5); and-- Introduce new requirements for the retention and security of the conveyancing file in line with the Seventh Data Protection Principle set out in the Data Protection Act 1998 (paragraph 14.3.1).Amendment to paragraph 5.10.8You 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 comp letion.

If confirmation of payment from the ground landlord cannot be obtained, we are prepared to proceed provided that you are satisfied that the absence of the ground 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.Amendment to Paragraph 5.11.1In paragraph 5.11 the following 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;-- 'An interest in the land' means such interest in the common parts as enables the management company to fully carry out its obligations in respect of the common parts, and such interest may be by way of (a) a lease or (b) the grant of an easement.If a management company is required to maintain or repair the common parts, the management company should have an interest in the land; if the management company's interest in the common parts is not 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 September 2000: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 judgementAmendment to Paragraph 5.13.15.13.1 If any document is being executed under a 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 the power should comply with s.25 of the Trustee Act 1925, as amended by s.7 of the Trustee Delegation Act 1999, or with s.1 of the Trustee Delegation Act 1999 with the attorney making an appropriate statement under s.2 of the 1999 Act.Amendment to Paragraph 6.6.1.56.6.1.5 The monitoring of the development by a professional consultant.

You should ensure that the professional consultant properly completes the lender's Professional Consultant's Certificate in the form as published below, and on the Council of Mortgage Lenders' Web site (www.cml.org.uk) 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 or commercial buildings and has one or more of the following qualifications (continue with paragraph 6.6.1.5.1 as set out in the handbook).Amendment to paragraph 14.3.114.3.1 For evidential purposes, you must keep your file for at least six years from the date of the mortgage before destroying it.

Microfiching or data imaging is suitable compliance with this requirement.

It is the practice of some fraudsters to demand t he 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:14.3.1.1 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; and14.3.1.2 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.Professional Consultant's Certificate Return To: .

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.Name of Applicant(s) .

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.Full address of property .

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.I certify that:1.

I have visited the site at appropriate periods from the commencement of construction to the current stage to check:(a) progress,(b) use of materials, and(c) conformity with structural drawings, specifications and building regulations.2.

At the time of my last inspection on .

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., the property had reached the stage of .

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.3.

So far as could be determined by each periodic visual inspection, the property has been constructed:(a) to a satisfactory standard, and(b) in general compliance with the approved structural drawings and specifications and/or building regulations.4.

I was originally retained by .

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who is the applicant/builder/developer in this case*.5.

I am aware this certificate is being relied upon by the first purchaser .

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of the property and also by .

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(name of lender) when making a mortgage advance to that purchaser secured on this property.

I confirm that I have appropriate experience in the design and/or monitoring of the construction or conversion of residential or commercial buildings.6.

The Contracts (Rights of Third Parties) Act 1999 shall apply.Name of Professional Consultant .

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Qualifications .

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.Adress .

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.Telephone No .

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Fax No .

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.Professional Indemnity Insurer .

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Date of Cover .

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.Amount of Cover .

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.Signature .

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Date .

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.* Delete the words which do not apply.tWordStar 4.0B Messages 14 Feb 87Copyright (C) 1983,1987 MicroPro International Corp.All