Transfer of Equity Conveyancing - Capital Home Loans Panel Requirements

Does Capital Home Loans have a standard form of transfer of equity /deed of covenant?

No

When drafting or approving a transfer of equity, you should bear in mind that:

• 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;
• 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 below for where to obtain this);
• there should be no statement that all interest has been paid to date.

If different from 1.11 of Capital Home Loans UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:

customerservices@chl.org.uk
Customer Services, CHL Mortgages, Admiral House, Harlington Way, Fleet, Hants, GU51 4YA

As a conveyancer on the Capital Home Loans panel you must ensure that every person who will be a borrower after the transfer covenants with Capital Home Loans to pay the money secured by the mortgage, except in the case of:

• an original party to the mortgage (unless the mortgage conditions are being varied); or
• a person who has previously covenanted to that effect.

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 Capital Home Loans tell you not to in their CML part 2 requirements, please see below).

Does Capital Home Loans need to be sent the transfer of equity?

Yes

If Capital Home Loans have agreed to release a borrower or a guarantor and their 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.

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

You must only submit the transfer to Capital Home Loans for execution if it releases a party. All other parties must execute the transfer before it is sent to Capital Home Loans . See Capital Home Loans part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Capital Home Loans approved form of attestation clause - see below:

If different from 1.11, Capital Home Loans contact point for obtaining execution of transfer equity:

customerservices@chl.org.uk
Customer Services, CHL Mortgages, Admiral House, Harlington Way, Fleet, Hants, GU51 4YA

What form of attestation clause does Capital Home Loans use?

Please contact us on the details below :
Customer Services Department, CHL Mortgages, Admiral House, Harlington Way, Fleet, Hants, GU51 4YA
customerservices@chl.org.uk