Common questions relating to Ahli United Bank transfer of equity
- Me and a friend got a joint mortgage with Ahli United Bank on a property in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential issue with Ahli United Bank with him being solely liable for the total loan as opposed to only half of it?
- I own a apartment in Witham
, with a Ahli United Bank mortgage with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from Ahli United Bank to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Ahli United Bank (supposedly). In order to save fees can I do the Land Registry formalities?
- My Ahli United Bank home loan is in joint names with ex, he has agreed to come off the mortgage and let me have the property. Ahli United Bank have consented to the transfer of equity to me solely. Do Ahli United Bank write my boss to check my salary?
- Me and my partner jointly own a house in Romsey
. Home loan is with Ahli United Bank. I want to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be straightforward?
- I got my Decree Absolute three years ago. For some reason I never dealt with the transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Ahli United Bank is willing to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
- I am answering a Ahli United Bank transfer of equity form and have come to the part concerning debts etc. There are some debts that I have been clearing for a number of years, in fact they have long since disappeared from my credit records. Do I need to set these out?
- I am hoping to remortgage my maisonette in Witham
switching from Chelsea BS to Ahli United Bank. The flat is currently in joint names but propose for it to be in my name only once I remortgage. My former partner has agreed to this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
Examples of questions in a lawyer questionnaire concerning a Ahli United Bank Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please let us know where you are making any payment for the Transfer of Equity and to whom and specify any such sums?
Please provide a copy of your National Insurance Number?
Please give the details of anyone to be removed from the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Caveats to be read in supporting 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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, 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 conveyancer 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 market value of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Ahli United Bank.
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 should not be regarded as 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.