Frequently asked questions relating to Allied Irish Bank transfer of equity

• As things stand I have a joint Allied Irish Bank mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is approx 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
• What if my application doesn't meet Allied Irish Bank lending criteria for a transfer of equity?
• After 3 years separated I have made the decision to give up my interest in the apartment to my husband who is re-mortgaging with Allied Irish Bank. Can a transfer of equity be completed in less than 28 days?
• I got divorced in 2010. Foolishly I never dealt with the transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Allied Irish Bank is willing to transfer the full equity in my name (financial checks done). Does she need a conveyancer?
• I am hoping to refinance my home in Miles Platting switching from Skipton to Allied Irish Bank. The flat is jointly owned but I would like it to be in my name only when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
• Is it possible to transfer the equity held in my property with my Allied Irish Bank mortgage?
• My father passed away early last year leaving a unencumbered bungalow to me and my half brother equally. He has always lived in the house, there was a condition in her will saying the housecould not be sold for three years following her passing so he could remain there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have discussed 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 half from me?

Examples of questions in a lawyer questionnaire concerning a Allied Irish Bank Transfer of Equity

Information to consider in supplemental the above Allied Irish 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 Allied Irish 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor 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 the conclusion of the transfer of equity transaction.

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 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.