Transfer of Equity Conveyancing - Mortgage Express Panel Requirements
This page was fashioned to assist E&W property lawyers who conduct Transfer of Equity conveyancing who are on the Mortgage Express conveyancing panel. It is not intended as an alternative to checking Mortgage Express Part-2 instructions
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Mortgage Express require, the deed of covenant on their behalf. See below to see if Mortgage Express have standard forms of transfer and deed of covenant
Does Mortgage Express have a standard form of transfer of equity /deed of covenant?
No. Covenant by new Borrower(s) to be inserted in Form TR1 or AS1 as set out in paragraph 16.3.4.
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 Mortgage Express UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
As 1.11a
As a conveyancer on the Mortgage Express panel you must ensure that every person who will be a borrower after the transfer covenants with Mortgage Express 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 Mortgage Express tell you not to in their CML part 2 requirements, please see below).
Does Mortgage Express need to be sent the transfer of equity?
A certified copy to be placed with the title deeds on their return to us.
If Mortgage Express 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 Mortgage Express for execution if it releases a party. All other parties must execute the transfer before it is sent to Mortgage Express . See Mortgage Express part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Mortgage Express approved form of attestation clause - see below:
If different from 1.11, Mortgage Express contact point for obtaining execution of transfer equity:
As 1.11a
What form of attestation clause does Mortgage Express use?
"Signed and delivered as a deed by ?????????????.
As attorney for and on behalf of ??????????????.[insert mortgagee's name as given on Charge Certificate]"
Find out how to order your redemption statement request from Mortgage Express