Transfer of Equity Conveyancing - Bank of Scotland Panel Requirements
The content on this web-page was fashioned to assist England and Wales conveyancing practitioners conducting Transfer of Equity conveyancing who are on the Bank of Scotland solicitor panel. It is not a substitute for checking the CML handbook requirements for Bank of Scotland
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Bank of Scotland require, the deed of covenant on their behalf. See below to see if Bank of Scotland have standard forms of transfer and deed of covenant
Does Bank of Scotland 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 Bank of Scotland UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Bank of Scotland Plc, Mortgage Operations, Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ. Tel: 0345 603 1136 Fax: 0131 339 2366
As a conveyancer on the Bank of Scotland panel you must ensure that every person who will be a borrower after the transfer covenants with Bank of Scotland 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 Bank of Scotland tell you not to in their CML part 2 requirements, please see below).
Does Bank of Scotland need to be sent the transfer of equity?
Yes
If Bank of Scotland 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 Bank of Scotland for execution if it releases a party. All other parties must execute the transfer before it is sent to Bank of Scotland . See Bank of Scotland part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Bank of Scotland approved form of attestation clause - see below:
If different from 1.11, Bank of Scotland contact point for obtaining execution of transfer equity:
Bank of Scotland Plc, Mortgage Operations, Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ. Tel: 0345 603 1136 Fax: 0131 339 2366
What form of attestation clause does Bank of Scotland use?
Executed as a deed by
An authorised signatory for and on behalf of Bank of Scotland plc.
PLEASE NOTE we require you to confirm the effective date of the transfer before we can update our records ? failure to do so will mean that we will continue to correspond with the original parties to the mortgage.
Find out how to order your redemption statement request from Bank of Scotland