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Ahli United Bank transfer of equity: q and a’s

  • I purchased a house with my cousin six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Ahli United Bank mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • My partner and I jointly own a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. If Ahli United Bank are fine with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
  • I am refinancing my home in Witham does my lawyer need to be on the Ahli United Bank Solicitor panel. The conveyancing also involves a transfer of equity.
  • Will I incur any fees for a Transfer of Equity where the current mortgage is with Ahli United Bank?
  • As things stand I have a joint Ahli United Bank mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
  • Have recently separated from my ex of thirty years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What percentage do I get. Is it half of the equity after discharging the mortgage with Ahli United Bank? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being taken advantage of
  • I am in the process of removing a name from a joint mortgage and the Ahli United Bank need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Miles Platting conveyancing solicitor to deal with the transfer of equity? They need to be on the Ahli United Bank conveyancing panel.

Sample of information requested in a conveyancer questionnaire relating to Ahli United Bank Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please give the details of anyone to be removed from the property title?

Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

General Advice to read in supporting the above Ahli United Bank transfer of equity Questions and Answers :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Ahli United Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your lawyer will check with Ahli United Bank This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Ahli United Bank or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy varies based on the valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Ahli United Bank your property may be repossessed.

Preparing the Transfer of Equity with a Ahli United Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Ahli United Bank is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.


Frequently asked questions relating to Ahli United Bank transfer of equity