Transfer of Equity Conveyancing - Yorkshire Bank Panel Requirements
The content on this web-page is designed to help E&W conveyancing solicitors carrying out Transfer of Equity conveyancing who are on the Yorkshire Bank conveyancing panel. It is not intended as an alternative to checking Yorkshire Bank Part-2 instructions
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Yorkshire Bank require, the deed of covenant on their behalf. See below to see if Yorkshire Bank have standard forms of transfer and deed of covenant
Does Yorkshire Bank 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 Yorkshire Bank UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Mortgage Services
PO BOX 3105
Clydebank
Glasgow
G60 9AU
Tel - 0800 121 4203
As a conveyancer on the Yorkshire Bank panel you must ensure that every person who will be a borrower after the transfer covenants with Yorkshire Bank 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 Yorkshire Bank tell you not to in their CML part 2 requirements, please see below).
Does Yorkshire Bank need to be sent the transfer of equity?
No.
If Yorkshire Bank 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 Yorkshire Bank for execution if it releases a party. All other parties must execute the transfer before it is sent to Yorkshire Bank . See Yorkshire Bank part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Yorkshire Bank approved form of attestation clause - see below:
If different from 1.11, Yorkshire Bank contact point for obtaining execution of transfer equity:
Mortgage Services
PO BOX 3105
Clydebank
Glasgow
G60 9AU
Tel - 0800 121 4203
What form of attestation clause does Yorkshire Bank use?
"Executed as a Deed by LEAVE BLANK as attorney for and on behalf of Yorkshire Bank Home Loans Limited"
Find out how to order your redemption statement request from Yorkshire Bank