Transfer of Equity Conveyancing - Manchester Building Society Panel Requirements
The content on this web-page intends to assist England and Wales conveyancing practitioners who conduct Transfer of Equity conveyancing who are on the Manchester Building Society solicitor panel. It is not a substitute for reviewing the CML handbook requirements for Manchester Building Society
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Manchester Building Society require, the deed of covenant on their behalf. See below to see if Manchester Building Society have standard forms of transfer and deed of covenant
Does Manchester 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 Manchester Building Society UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Mortgage Customer Services Department.
As a conveyancer on the Manchester Building Society panel you must ensure that every person who will be a borrower after the transfer covenants with Manchester 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 Manchester Building Society tell you not to in their CML part 2 requirements, please see below).
Does Manchester Building Society need to be sent the transfer of equity?
Please place with Title Deeds.
If Manchester 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 Manchester Building Society for execution if it releases a party. All other parties must execute the transfer before it is sent to Manchester Building Society . See Manchester Building Society part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Manchester Building Society approved form of attestation clause - see below:
If different from 1.11, Manchester Building Society contact point for obtaining execution of transfer equity:
Mortgage Customer Services Department.
What form of attestation clause does Manchester Building Society use?
In witness whereof the seal of the Manchester Building Society is hereto affixed this day of 20 .
Authorised Signatory
By authority of the Board of Directors
Find out how to order your redemption statement request from Manchester Building Society