Common questions relating to Allied Irish Bank transfer of equity
- As things stand I have a joint Allied Irish Bank mortgage with my cousin and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
- My current home loan is with Allied Irish Bank. Can I transfer equity to someone under eighteen years old?
- My fiance and I jointly own a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. Assuming Allied Irish Bank are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- I got divorced two years ago. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Allied Irish Bank is content to transfer the full equity in my name (affordability checks done). Does my ex need a solicitor?
- I acquired a property 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 Allied Irish 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?
- What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Allied Irish Bank - and have been quoted Four Hundred pounds including VAT by Allied Irish Bank's appointed lawyer, Is this is a good price or not?
- At what point do I incur stamp duty payable for the transfer of equity in my home in my sole name which is taking place simultaneously with a switching mortgage via Allied Irish Bank?
Examples of information requested in a conveyancer questionnaire concerning a Allied Irish Bank Transfer of Equity
Is it the case that one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Have you approached Allied Irish Bank to obtain consent to the Transfer of Equity
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in conjunction with the above Allied Irish Bank transfer of equity Info :
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 properties
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 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 market value 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 conveyancing solicitor 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 lawyer 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 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.