Top seven questions relating to Ahli United Bank transfer of equity
- My father died half a year ago leaving a loan-free house to me and my step brother in equal shared. Having continues to reside at the property, there was a condition in her will specifying that the housecould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- When it comes to transfer of equity conveyancing involving a remortgage with Ahli United Bank should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My divorce is through as is the consent order. Now I need to sort out the transfer of equity at the HMLR and the Ahli United Bank mortgage. I have asked Ahli United Bank for the transfer of equity application. What do I do now?
- I am am in need of a conveyancing solicitor to undertake my transfer of equity. Ahli United Bank have been approached for a refinancing. I thought of asking my financial adviser. I understand he will likely get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- I am hoping to refinance my flat in Sedgefield
switching from Santander to Ahli United Bank. The maisonette is currently in joint names but intend for it to be in my name only once I switch. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancer involved.
- Have recently split up with my ex of twenty years. I'm now back with my parents again and she wishes to remain in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Ahli United Bank home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting the best deal
- Can I transfer the equity held in my property with my Ahli United Bank home loan?
Information that may be required from your lawyer could ask about your Ahli United Bank Transfer of Equity
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please clarify if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Caveats to be read in supplemental the above Ahli United Bank transfer of equity Questions and Answers :
Tax and Legal
There may be various 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 properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.
