Frequently asked questions relating to Ahli United Bank transfer of equity
- My friend and I got a joint mortgage with Ahli United Bank on a house in 2013. I am now thinking of buying a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Is there likely to be any problem with Ahli United Bank with him being on the hook for the total loan rather than only part of it?
- What can I do where I am dissatisfied with the lawyer who carried out my transfer of equity transaction?
- I currently have a joint Ahli United Bank mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase a property with my partner. The remaining mortgage is about 175k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?
- What is the process for adding or removing names (transfer of equity) to or from my Ahli United Bank mortgage account?
- Am I best advised stop my mortgage payments with Ahli United Bank as soon as a date for my remortgage and transfer of equity has been set?
- I am filling out a Ahli United Bank transfer of equity request and have arrived at the section concerning debts etc. I do some debts that I have been paying off over a long period, in fact they no longer remain my credit records. Am I obliged to reveal these?
- My dad passed away seven months ago leaving a loan-free bungalow to me and my brother equally. He has always lived in the property, there was a clause in the will specifying that the premisescould not be sold for three years following her passing so he could reside there for a prescribed period. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to buy my share?
Questions that your conveyancing solicitor may ask in relation to your Ahli United Bank Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Is it the case that one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
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?
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Information to consider in conjunction with the above Ahli United Bank transfer of equity Info :
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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation 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 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 conveyancing solicitor 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 market value of the property at finalisation 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 conveyancer 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 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.