Transfer of Equity Conveyancing - Scottish Widows Panel Requirements
This page was created to help England and Wales conveyancing practitioners conducting Transfer of Equity conveyancing who are on the Scottish Widows solicitor panel. It is not a substitute for reviewing the CML handbook requirements for Scottish Widows
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Scottish Widows require, the deed of covenant on their behalf. See below to see if Scottish Widows have standard forms of transfer and deed of covenant
Does Scottish Widows have a standard form of transfer of equity /deed of covenant?
No - However we require a fresh Legal Charge to be granted by the new Borrower(s)
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 Scottish Widows UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Mortgage Customer Services Department
Scottish Widows Bank
PO Box 883
LEEDS
LS1 9TY
Phone:- 0345 845 8555
As a conveyancer on the Scottish Widows panel you must ensure that every person who will be a borrower after the transfer covenants with Scottish Widows 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 Scottish Widows tell you not to in their CML part 2 requirements, please see below).
Does Scottish Widows need to be sent the transfer of equity?
No - However we require a fresh Legal Charge to be granted by the new Borrower(s)
If Scottish Widows 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 Scottish Widows for execution if it releases a party. All other parties must execute the transfer before it is sent to Scottish Widows . See Scottish Widows part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Scottish Widows approved form of attestation clause - see below:
If different from 1.11, Scottish Widows contact point for obtaining execution of transfer equity:
N/A - we require a fresh legal charge to be granted by the new borrower(s) (see 16.3.4)
What form of attestation clause does Scottish Widows use?
N/A
Find out how to order your redemption statement request from Scottish Widows