Transfer of Equity Conveyancing - Danske Bank Panel Requirements

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

No. You must ensure that the Bank's interest is sufficiently protected in the transfer, including the retention of any relevant entries on the title.

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

Please contact:

Danske Bank
Mortgage Customer Support
Personal Collateral Team, Killeaton House
41 Mosside Road, Dunmurry
Belfast, BT17 9HH
DX 2015 NR BELFAST 2

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

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

Yes, please send to:

Danske Bank
Mortgage Customer Support
Personal Collateral Team, Killeaton House
41 Mosside Road, Dunmurry
Belfast, BT17 9HH
DX 2015 NR BELFAST 2

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

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

Please contact:

Danske Bank
Mortgage Customer Support
Personal Collateral Team, Killeaton House
41 Mosside Road, Dunmurry
Belfast, BT17 9HH
DX 2015 NR BELFAST 2

What form of attestation clause does Danske Bank use?

The Common Seal of Northern Bank Limited was hereunto affixed in the presence of: …