Transfer of Equity Conveyancing - Co operative Bank Panel Requirements

Does Co operative Bank 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 Co operative Bank UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:

Address and other contact details as stated in the Transfer of Equity Letter of Instructions, quoting our reference.

As a conveyancer on the Co operative Bank panel you must ensure that every person who will be a borrower after the transfer covenants with Co operative Bank 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 Co operative Bank tell you not to in their CML part 2 requirements, please see below).

Does Co operative Bank need to be sent the transfer of equity?

Only if we need to sign it. Please refer to the Transfer of Equity Letter of Instructions to confirm what documents are required to be sent to us post-completion.

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

If different from 1.11, Co operative Bank contact point for obtaining execution of transfer equity:

Address and other contact details as stated in the Transfer of Equity Letter of Instructions, quoting our reference.

What form of attestation clause does Co operative Bank use?

Executed as a deed by

..................................................
as a duly appointed attorney of
The Co-operative Bank p.l.c. .....................................................

in the presence of:

Witness name: ................................................

Witness address: .......................................................

.......................................................

.......................................................

.......................................................

Witness signature: ....................................................