Recently asked questions relating to Aldermore Bank transfer of equity
- I bought a house with a friend in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Aldermore Bank mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I co-own a property in Winchelsea
, with a Aldermore Bank mortgage with my ex husband. He and his new partner are going to buy me out. We had approval from Aldermore Bank to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Aldermore Bank (supposedly). In order to save fees can I deal with the Land Registry formalities?
- I currently have a joint Aldermore Bank mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my partner. The remaining mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- I am disposing of my share of a property in Woodside to my co-owners husband, they are sticking with Aldermore Bank as the the existing lender. We are haggling as to who should cover the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the fees for?
- When it comes to transfer of equity conveyancing involving refinance with Aldermore Bank should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Online reading suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and simultaneously switching mortgage with Aldermore Bank
- I already have a mortgage with Aldermore Bank and am keeping my existing mortgaging but applying to have have the equity transferred to my sole name so my former wife will no longer be on the deeds. How long can it take for the forms to be processed?
Information that may be required from your conveyancing solicitor may ask regarding your 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 the same
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Who will be responsible for the costs of the Transfer of Equity?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 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 conclusion of the transfer of equity transaction.
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 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.
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.