Top seven questions relating to Aldermore Bank transfer of equity

• The financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Aldermore Bank - Surely it’s advisable to just use them?
• My Aldermore Bank home loan we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. Aldermore Bank have consented to the transfer of equity to my individual name. Do Aldermore Bank contact my employer to confirm my salary?
• My divorce 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 do I do now?
• What are my options where I am dissatisfied with the lawyer who undertook our transfer of equity transaction?
• Me and my partner co-own a property in Dunnington . Mortgage is with Aldermore Bank. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
• I am disposing of my share of a flat in Birmingham to the other co-owners fiance, they are sticking with Aldermore Bank being the the existing lender. We are in heated discussion 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 legal bill?
• I own a flat in Miles Platting , with a Aldermore Bank mortgage with my ex husband. He and his fiance are going to buy me out. We had consent from Aldermore Bank to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Aldermore Bank (apparently). Can we deal with the Land Registry formalities?

Sample of questions in a lawyer form concerning a Aldermore Bank Transfer of Equity

Caveats to be read in further to 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

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Aldermore Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 conveyancer 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.