Top seven questions relating to Aldermore Bank transfer of equity
- My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity for the property and the Aldermore Bank home loan. I have contacted Aldermore Bank for the transfer of equity forms. What are my next steps?
- I intend to refinance my maisonette in Miles Platting
changing from Bank of Scotland to Aldermore Bank. The home is jointly owned but propose for it to be in my sole name once I remortgage. My husband has verbally consented to this and is willing to sign a form but neither of us want to incur conveyancer charges.
- Given that we have been a number of years separated I have made the decision to transfer my share of the apartment to my husband who is refinancing with Aldermore Bank. Could this transfer of equity be done in 28 days?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Aldermore Bank?
- Been reviewing online forums that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and at the same time remortgaging with Aldermore Bank
- I am disposing of my equity in property in Warwick to my co-owners husband, they are reapplying to Aldermore Bank. We are haggling as to who should cover the legal bill for the transfer of equity. Is this usually split or is one of us obliged to cover the fees for?
- I bought a property with my brother in 2008 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Aldermore Bank mortgage. There is a 30k difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a conveyancing solicitor form relating to Aldermore Bank Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Who will be responsible for the costs of the Transfer of Equity?
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?
Has consent been obtained from Aldermore Bank to the proposed transfer of equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Where you are adding someone 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.
Caveats to be read in further to 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 properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of 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 finalisation 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 provided 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.