Recently asked questions relating to Atom Bank transfer of equity
- Is it possible to apply to request a further advance from Atom Bank as part of a Transfer of Equity?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and simultaneously switching mortgage with Atom Bank
- I am selling my equity in property in Warwick to the other co-owners husband, they are reapplying to Atom Bank. We are haggling as to who should cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the fees for?
- My ex-partner and I are are looking to find a trustworthy conveyancing lawyer to help me sell in a transfer of equity and refinance with Atom Bank. I really don't want to get ripped off and there are plenty conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- What are my options where I am not happy with the conveyancing solicitor who handled my transfer of equity transaction?
- I bought a property with my brother in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Atom Bank mortgage. There is a 30k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- I am in the process of removing a name from a joint mortgage and the Atom Bank require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Heathfield
lawyer to deal with the transfer of equity? They need to be on the Atom Bank conveyancing panel.
Examples of questions in a conveyancing solicitor form relating to Atom Bank Transfer of Equity
Where you 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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the details of anyone who jointly owns the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in in addition to the above Atom 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 Atom 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 conditions are not complied with you may be in breach of the lease. This could trigger 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 conveyancer will check with Atom 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 Atom 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 is dependent 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 Atom Bank.
Preparing the Transfer of Equity with a Atom 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 Atom 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 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.