Recently asked questions relating to Allied Irish Bank transfer of equity
- At what point do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage with Allied Irish Bank?
- My father died half a year ago leaving a loan-free property to me and my half brother equally. He has always lived in the property, there was a clause in the will specifying that the premisescould not be sold for 24 months after her passing so he could reside there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I am completing a Allied Irish Bank transfer of equity request and have arrived at the section that asks about debts etc. There are some debts that I have been paying off for a number of years, I understand that they no longer remain my credit rating. Must I disclose these?
- My Allied Irish Bank home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Allied Irish Bank will permit the transfer of equity to my individual name. Do Allied Irish Bank call my employer to verify my salary?
- What if my application doesn't meet Allied Irish Bank lending criteria for a transfer of equity?
- I got divorced two years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Allied Irish Bank is content to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
- Me and my former wife and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Allied Irish Bank. I I am fearful of by bill escalating out of control but with many conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
Examples of questions in a conveyancer questionnaire concerning a Allied Irish Bank Transfer of Equity
Has one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you 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?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please give the details of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in further to the above Allied Irish 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 Allied Irish Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may have a requirement for notices to be served and 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 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 Allied Irish 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 Allied Irish 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Allied Irish Bank your property may be repossessed.
Preparing the Transfer of Equity with a Allied Irish 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 Allied Irish 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 provided 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.