Transfer of Equity Conveyancing - Bank of Ireland Panel Requirements

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

Mortgage Services Department, Bank of Ireland UK, PO Box 3191, One Temple Quay, Bristol, BS1 9HY. Tel No 0345 602 7056; Fax No 0117 943 6555. DX 98850 Bristol 2.

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

Does Bank of Ireland need to be sent the transfer of equity?

Yes, please send to Mortgage Services Department, Bank of Ireland UK, PO Box 3191, One Temple Quay, Bristol, BS1 9HY. Tel No 0345 602 7056; Fax No 0117 943 6555. DX 98850 Bristol 2.

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

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

Mortgage Services Department, Bank of Ireland UK, PO Box 3191, One Temple Quay, Bristol, BS1 9HY. Tel No 0345 602 7056; Fax No 0117 943 6555. DX 98850 Bristol 2.

What form of attestation clause does Bank of Ireland use?

"THE COMMON SEAL OF BANK OF IRELAND (UK) PLC was affixed hereto by authority of the Directors:"