Examples of recent questions relating to Aldermore Bank transfer of equity
- How do I go about adding or subtracting names (transfer of equity) to or from my Aldermore Bank mortgage account?
- I currently have a joint Aldermore Bank mortgage with my brother and am looking into the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy somewhere with my partner. The remaining mortgage is approx 175k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty payable?
- How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage with Aldermore Bank?
- I am answering a Aldermore Bank transfer of equity request and have arrived at the section regarding debts etc. There are some debts that I have been clearing since 2008, in fact they no longer remain my credit score. Do I need to set these out?
- I intend to refinance my maisonette in Dunnington
changing from Virgin Money to Aldermore Bank. The maisonette is currently in joint names but intend for it to be in my name only when I remortgage. My wife has agreed to this and is willing to sign a form but neither of us want to incur conveyancer fees.
- Having been 2 a couple of years estranged I have decided to transfer my interest in our former home to my husband who is refinancing with Aldermore Bank. Can a transfer of equity be done in less than 28 days?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Aldermore Bank?
Information that may be required from your conveyancer could ask regarding your Aldermore Bank Transfer of Equity
Please provide the details of anyone to be extracted from the title deeds?
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 what amounts
Have you approached Aldermore Bank to obtain consent to the Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
Caveats to be read in supporting the above Aldermore Bank transfer of equity Advice :
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 Aldermore Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
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 conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 Aldermore 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 Aldermore 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 time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Aldermore Bank.
Preparing the Transfer of Equity with a Aldermore 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 Aldermore 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 lawyer 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.