Deed of Assignment of Loan

This Deed of Assignment of Loan is for use where a lender assigns its rights under an existing loan agreement to a new lender. It is designed to transfer the lender’s rights only (for example the right to repayment and interest), not its obligations.

What This Deed of Assignment of Loan Template Does

Because only rights are assigned, the borrower does not need to be a party to the deed. The parties to the deed are the original lender and the entity acquiring the loan. If the original lender still has obligations under the loan agreement (for example, to make further advances), a Deed of Novation of Loan is likely to be more appropriate.

Key Points To Check

You should check that assignment is permitted under the original loan agreement. Some agreements prohibit assignment or require the borrower’s consent. The Simply-Docs Short and Long Form Loan Agreements both permit assignment by the lender.

For simplicity, it is often easier if the assignment takes place on an interest payment date. Otherwise, interest accrued but unpaid will usually need to be calculated.

Notice To The Borrower

It is important that notice is served on the borrower to alert them to the assignment. Failure to serve notice will mean that a legal assignment is not created. This template includes a form of notice in a schedule to the deed, and a form of acknowledgement the borrower can sign and return to confirm the assignment and the new lender.

Land Registry Execution Point

The execution provisions of this template are compliant and consistent with the requirements of the Land Registry for prescribed form deeds introduced from 20 September 2019.

Deed of Assignment of Loan is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.