LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Aldermore Bank

Examples of recent questions relating to Aldermore Bank transfer of equity

  • As things stand I have a joint Aldermore Bank mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is about 200k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
  • My current mortgage is with Aldermore Bank. Can I transfer equity to someone less than eighteen years old?
  • What if my application doesn't meet Aldermore Bank lending criteria for a transfer of equity?
  • What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Aldermore Bank - and have been quoted £250 plus VAT by Aldermore Bank's appointed conveyancing solicitor, Have I been over quoted?
  • I am transferring my share of a apartment in Warwick to the other co-owners fiance, they are sticking with Aldermore Bank as the the existing lender. We are haggling as to who should pay the costs of the transfer of equity. Is this normally shared or is one of us obliged to cover the fees for?
  • I am am in need of a conveyancing solicitor to deal with my transfer of equity. Aldermore Bank have been approached for a remortgage. I considered asking my financial adviser. I understand he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Aldermore Bank mortgage account?

Questions that your conveyancing solicitor may ask in relation to your Aldermore Bank Transfer of Equity

Please give the details of anyone to be removed from the property title?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If 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?

Who will be responsible for the costs of the Transfer of Equity?

General Advice to read in supporting the above Aldermore 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 Aldermore Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 lawyer 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 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 lawyer 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 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.


Frequently asked questions relating to Aldermore Bank transfer of equity