Examples of recent questions relating to Allied Irish Bank transfer of equity
- At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my house in my name alone which is happening simultaneously with a switching mortgage via Allied Irish Bank?
- Can you tell me how to have someone removed from the title documents to a property where the home loan is with Allied Irish Bank
- I am disposing of my share of a property in Warwick to my co-owners husband, they are reapplying to Allied Irish Bank. We are in heated discussion as to who must cover the costs of the transfer of equity. Is this usually shared or is one party obliged to cover the fees for?
- My ex-partner and I are are seeking to find a trustworthy conveyancing solicitor to assist in a transfer of equity and remortgage with Allied Irish Bank. I really don't want to get ripped off but with lots of conveyancing practices who do transfer of equity conveyancing out there...how do I know which is best select?
- My decree absolute is through as is the consent order. Now I must address the transfer of equity at the HMLR and the Allied Irish Bank home loan. I have asked Allied Irish Bank for the transfer of equity application. What happens next?
- What do I do if I am unhappy with the conveyancing solicitor who handled our transfer of equity conveyancing?
- My wife and myself have equal shares in a buy to let. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to reduce our tax on the letting income. Assuming Allied Irish Bank are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
Examples of questions in a conveyancing solicitor questionnaire concerning a Allied Irish Bank Transfer of Equity
Have you approached Allied Irish Bank to seek consent to the Transfer of Equity
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
General Advice to read in supplemental the above Allied Irish Bank transfer of equity Questions and Answers :
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 titles
If your property is leasehold, provisions in the lease may require that you obtain the consent of 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.
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 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 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 lawyer 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 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.