Frequently asked questions relating to Aldermore Bank transfer of equity
- I am completing a Aldermore Bank transfer of equity form and have arrived at the questions concerning debts etc. I do some debts that I have been paying off since 2008, in fact they have long since disappeared from my credit score. Must I set these out?
- How and when do I incur stamp duty payable for the transfer of equity in my home in my sole name which is taking place at the same time as a refinancing with Aldermore Bank?
- My Aldermore Bank mortgage is in joint names with ex, he is agreeable to come off the mortgage and put the house in my name alone. Aldermore Bank have consented to the transfer of equity to my individual name. Will Aldermore Bank call my boss to check my salary?
- Aldermore Bank yesterday agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- What is the process for adding or subtracting names (transfer of equity) to or from my Aldermore Bank mortgage account?
- My ex are seeking to get a lawyer in place for a new mortgage with Aldermore Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over England and Wales. Is it important to have a conveyancing solicitor local to us?
- My dad died early last year leaving a unencumbered semi to me and my step brother equally. Having continues to reside at the premises, there was a clause in the will saying the premisescould not be sold for 2 years after her passing so he could remain there for a specified time frame. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to buy my equity?
Information that may be required from your conveyancing solicitor could ask about your Aldermore Bank Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the details of anyone to be added to the title deeds?
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
General Advice to read in supplemental the above Aldermore Bank transfer of equity Info :
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, the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 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 finalisation 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 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.