Transfer of Equity Conveyancing - Nationwide Building Society Panel Requirements

Does Nationwide Building Society 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 Nationwide Building Society UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:

www.nationwide.co.uk/Lawyers If it is a former Portman mortgage then please phone Nationwide Direct on 0800 30 20 11

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

Does Nationwide Building Society need to be sent the transfer of equity?

No - to be sent to HM Land Registry.

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

If different from 1.11, Nationwide Building Society contact point for obtaining execution of transfer equity:

There is no longer a requirement to submit the TR1 to us for sealing. We have agreed with the Land Registry that the Transfer Deed can be sent directly to them after all conditions have been met, however a bankruptcy search should be carried out for all new borrowers and any adverse entries or results must be reported to us before we can complete the Transfer of Equity. For all new borrowers being added to the mortgage, we require a covenant to be included in the TR1 binding the new borrower(s) by all the terms and conditions of the mortgage, as if they had been an original borrower. Please inform us when the transfer has completed so we can update our records.

What form of attestation clause does Nationwide Building Society use?

n/a