Recently asked questions relating to Allied Irish Bank transfer of equity
- My dad died last May leaving a mortgage-free semi to me and my step brother 50:50. He has always lived in the house, there was a clause in her will specifying that the premisescould not be sold for three years after her death so he could reside there for a while. He now wants to remain in the premises beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
- My friend and I got a joint mortgage with Allied Irish Bank on a flat about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential concerns with Allied Irish Bank with him being solely liable for the total loan rather than only half of it?
- I acquired a house with my brother in 2010 Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Allied Irish Bank mortgage. There is a significant difference between the value the Allied Irish Bank say and what the property would sell for currently. Can you offer any advice?
- The financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Allied Irish Bank - Surely it’s advisable to just use them?
- I currently have a joint Allied Irish Bank mortgage with my step-brother and am investigating the option of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is about 250k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
- My Allied Irish Bank mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Allied Irish Bank have consented to the transfer of equity to me solely. Do Allied Irish Bank get in touch with my employer to verify my salary?
- How do I go about adding or subtracting names (transfer of equity) to or from my Allied Irish Bank mortgage account?
Information that may be required from your lawyer may ask regarding your Allied Irish Bank Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please give the details of anyone to be added to the property title?
Please give the details of anyone who jointly owns the property with you?
Please give the details of anyone to be extracted from the title deeds?
If 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?
General Advice to read in conjunction with the above Allied Irish Bank transfer of equity Advice :
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 obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation 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 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 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 transaction.
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 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.
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.