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Atom Bank

Examples of recent questions relating to Atom Bank transfer of equity

  • I am trying to find a conveyancing solicitor to handle my transfer of equity. Atom Bank have been approached for a remortgage. I considered asking my mortgage broker. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?
  • I am thinking of remortgaging my flat in Winchelsea does my lawyer need to be on the Atom Bank Solicitor panel. The conveyancing also involves a transfer of equity.
  • I currently have a joint Atom Bank mortgage with my cousin and am investigating the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is about 250k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty due?
  • My partner and I jointly own a house in Wakefield . Mortgage is with Atom Bank. I want to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be straightforward?
  • My financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Atom Bank - Is it not simpler advisable to just use them?
  • Atom Bank have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
  • Me and a friend got a joint mortgage with Atom Bank on a property in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed a price what are the next steps? Is there likely to be any problem with Atom Bank with him being solely liable for the total mortgage rather than only part of it?

Questions that your conveyancer may ask about your Atom Bank Transfer of Equity

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

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

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please give the details of anyone to be extracted from the title deeds?

Please clarify where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?

Important warnings to consider in further to the above Atom 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 Atom 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 require that you have a license to do so from the freeholder. If such conditions are not strictly observed 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 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 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Atom Bank your property may be repossessed.

Preparing the Transfer of Equity with a Atom 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 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 conveyancer 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.


Frequently asked questions relating to Atom Bank transfer of equity