Transfer of Equity Conveyancing - Habito Panel Requirements
The content on this web-page is designed to assist England and Wales conveyancing solicitors carrying out Transfer of Equity conveyancing who are on the Habito conveyancing panel. It is not intended as an alternative to checking Habito Part-2 instructions
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Habito require, the deed of covenant on their behalf. See below to see if Habito have standard forms of transfer and deed of covenant
Does Habito have a standard form of transfer of equity /deed of covenant?
No. You must ensure that our interest is sufficiently protected in the transfer, including the retention of any relevant entries on the title
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 Habito UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Hey Habito Limited
PO Box 1173
1 George Street
Uxbridge
UB8 9BW
mymortgage@habito.com
As a conveyancer on the Habito panel you must ensure that every person who will be a borrower after the transfer covenants with Habito 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 Habito tell you not to in their CML part 2 requirements, please see below).
Does Habito need to be sent the transfer of equity?
No - to be sent to HM Land Registry.
If Habito 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 Habito for execution if it releases a party. All other parties must execute the transfer before it is sent to Habito . See Habito part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Habito approved form of attestation clause - see below:
If different from 1.11, Habito contact point for obtaining execution of transfer equity:
Hey Habito Limited
PO Box 1173
1 George Street
Uxbridge
UB8 9BW
mymortgage@habito.com
What form of attestation clause does Habito use?
"Executed as a deed by affixing the Common Seal of Hey Habito Limited in the presence of:
By Authority of the Board of Directors""."
Find out how to order your redemption statement request from Habito