Recently asked questions relating to Aldermore Bank transfer of equity
- My brother and I got a joint mortgage with Aldermore Bank on a property a couple of years ago. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Would there be any potential problem with Aldermore Bank with him being solely liable for the total loan rather than only part of it?
- I co-own a property in Littleborough
, with a Aldermore Bank loan with my former partner. He and his new partner are going to buy me out. We had consent from Aldermore Bank to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Aldermore Bank (supposedly). In order to save fees can I do the Land Registry formalities?
- Is it possible to transfer the equity held in my property with my Aldermore Bank home loan?
- After three years estranged I have made the decision to transfer my share of the apartment to my husband who is re-mortgaging with Aldermore Bank. Could this transfer of equity be done in four weeks?
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- I am planning on removing a name from a joint mortgage and the Aldermore Bank need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Romsey
conveyancing solicitor to deal with the transfer of equity? They need to be on the Aldermore Bank conveyancing panel.
- I am searching for a quality conveyancing lawyer to help me sell in a transfer of equity and refinance with Aldermore Bank. I really don't want to get ripped off and there's lots of conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
Information that may be required from your lawyer may ask regarding your Aldermore Bank Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from Aldermore Bank to the proposed transfer of equity?
Would you like us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Please give the details of those who jointly own the premises with you?
Caveats to be read in conjunction with the above Aldermore 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 Aldermore Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require 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.
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 conveyancing solicitor 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 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 Aldermore Bank your property may be repossessed.
Preparing the Transfer of Equity with a Aldermore Bank Mortgage
When it comes to preparing the the Land Registry documents your lawyer 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 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.