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Allied Irish Bank

Top seven questions relating to Allied Irish Bank transfer of equity

  • Me and a friend got a joint mortgage with Allied Irish Bank on a apartment in 2013. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential concerns with Allied Irish Bank with him being responsible for the total mortgage rather than only part of it?
  • My current home loan is with Allied Irish Bank. Can I transfer equity to someone who is not yet 18 years old?
  • I got my Decree Absolute in 2010. I simply never dealt with the transfer ownership from both our names 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 property and loan in my name (financial checks done). Does she need any legal representation?
  • What can I do where I am not happy with the conveyancing solicitor who did our transfer of equity transaction?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Allied Irish Bank?
  • Given that we have been 2 a couple of years estranged I have made the decision to give up my share of our apartment to my husband who is re-mortgaging with Allied Irish Bank. Can a transfer of equity be done inside four weeks?
  • I am filling out a Allied Irish Bank transfer of equity form and have arrived at the questions concerning debts etc. I do some debts that I have been discharging since 2008, I understand that they no longer remain my credit rating. Must I set these out?

Examples of information requested in a conveyancing solicitor form relating to Allied Irish Bank Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose any such sums?

Has consent been obtained from Allied Irish Bank to the proposed transfer of equity?

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?

Please list all persons who occupy the property, their respective ages and relationships to you.

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Important warnings to consider in in addition 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 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 landlord. If such conditions are not complied with you may be in violation of 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 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 conveyancing solicitor 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.


Frequently asked questions relating to Allied Irish Bank transfer of equity