Transfer of Equity Conveyancing - Royal Bank of Scotland Panel Requirements

Does Royal Bank of Scotland have a standard form of transfer of equity /deed of covenant?

No. We require a reconstitution of the security in Transfer of Equity cases.

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 Royal Bank of Scotland UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:

Mortgage Centre - As detailed above in 1.11a.

Offset Flexible Mortgage - RBS Offset Redemptions Team,
Ground Floor, Lakeside 300
Old Chapel Way
Broadland Business Park
NORWICH
NR7 0WG

Telephone: 0345 300 4013
Fax: 0870 400 9625

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

Does Royal Bank of Scotland need to be sent the transfer of equity?

No.
Offset Flexible Mortgage -Yes after completion.

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

If different from 1.11, Royal Bank of Scotland contact point for obtaining execution of transfer equity:

Not Applicable. See Section 16.3.1 above.

Offset Flexible Mortgage - RBS Offset Securities Team,
Ground Floor, Lakeside 300
Old Chapel Way
Broadland Business Park
NORWICH
NR7 0WG

Telephone: 0345 300 4013
Fax: 0845 878 9338

What form of attestation clause does Royal Bank of Scotland use?

Signed and delivered as a Deed for and on behalf of the Bank by a duly authorised signatory.