Recently asked questions relating to Aldermore Bank transfer of equity
- Is it sensible to stop my mortgage payments with Aldermore Bank once a date for my remortgage and transfer of equity has been agreed?
- How and when do I incur stamp duty chargeable for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage via Aldermore Bank?
- My Aldermore Bank mortgage is in joint names with ex, he is agreeable to be removed and let me have the property. Aldermore Bank will permit the transfer of equity to me solely. Do Aldermore Bank write my boss to check my salary?
- Me and a friend got a joint mortgage with Aldermore Bank on a apartment in 2013. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential problem with Aldermore Bank with him being responsible for the total mortgage rather than only part of it?
- I am hoping to remortgage my apartment in Winchelsea
changing from Lloyds TSB to Aldermore Bank. The maisonette is currently in joint names but wish for it to be in my name only once I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to incur lawyer charges.
- Been looking at consumer forums that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time switching mortgage with Aldermore Bank
- My former husband are planning to get a lawyer lined up for a new mortgage with Aldermore Bank. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over the country. Do we need to instruct a lawyer local to us?
Sample of questions in a conveyancer questionnaire relating to Aldermore Bank Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
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?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Information to consider in supplemental the above Aldermore Bank transfer of equity information :
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 premises
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 terms are not adhered to 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 the time of completion of the transfer of equity conveyancing.
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 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.