Allied Irish Bank transfer of equity example support desk enquires
- I am under the impression we would need at least AP1 and TR1. Is this true?
- I am answering a Allied Irish Bank transfer of equity request and have come to the section concerning defaults etc. There are some debts that I have been paying off for a number of years, in fact they no longer remain my credit score. Must I disclose these?
- My partner and I jointly own a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to reduce our tax on the letting 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 title documents would I lose my CGT relief.
- My partner and I jointly own a flat in Dunnington
. Home loan is with Allied Irish Bank. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be simple?
- As things stand I have a joint Allied Irish Bank mortgage with my brother and am investigating the feasibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty involved?
- My former husband are planning to get a lawyer in place for a remortgage with Allied Irish Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Is it important to appoint a conveyancer local to us?
- Having been four years apart I have decided to give up my share of the flat to my husband who is refinancing with Allied Irish Bank. Could this transfer of equity be completed in four weeks?
Information that may be required from your lawyer could ask in relation to your Allied Irish Bank Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
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 whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
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.
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Information to consider in in addition to the above Allied Irish Bank transfer of equity Info :
Tax and Legal
There are numerous potential 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, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
Indemnity Insurance
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 the time of completion 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 conveyancer 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.
