Recently asked questions relating to Allied Irish Bank transfer of equity
- I am in the process of refinancing my apartment in Romsey
does my lawyer need to be on the Allied Irish Bank Solicitor panel. The conveyancing also involves a transfer of equity.
- As things stand I have a joint Allied Irish Bank mortgage with my brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
- I own a property in Rye
, with a Allied Irish Bank mortgage with my ex husband. Him and his new partner are going to acquire my share. We had consent from Allied Irish Bank to remove my name with hers. The transfer of equity needs to be completed by a lawyer for Allied Irish Bank (supposedly). Can we do the Land Registry change?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously remortgaging with Allied Irish Bank
- My existing home loan is with Allied Irish Bank. Can I transfer equity to someone who is not yet eighteen years old?
- When it comes to transfer of equity conveyancing involving refinance with Allied Irish Bank should I be paying VAT 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
- I purchased a property with a friend in 2009 Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Allied Irish Bank mortgage. There is a 30k difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a lawyer questionnaire concerning a Allied Irish Bank Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the name(s) and addresse(s) of those who jointly own the property with you?
Please provide the details of anyone to be added to the property title?
Please provide a copy of your National Insurance Number?
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?
Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
General Advice to read in further to the above Allied Irish Bank transfer of equity Advice :
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
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 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 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 Allied Irish Bank.
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.
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.