Top seven questions relating to Atom Bank transfer of equity
- Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time refinancing with Atom Bank
- I am hoping to remortgage my home in Crabtree
switching from HSBC to Atom Bank. The apartment is currently in joint names but I would like it to be in my name only when I switch. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to get a second lawyer involved.
- My Atom Bank mortgage we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. Atom Bank will permit the transfer of equity to my individual name. Will Atom Bank call my boss to check my salary?
- I recently purchased a apartment without my partner's name on the title. My conveyancing solicitor claimed it is due to the fact that she is not in the loan offer with Atom Bank. Is it possible for me to add her name on the title?
- I am trying to find a lawyer to deal with my transfer of equity. Atom Bank are dealing with the refinancing. I thought of asking my financial adviser. I understand he may receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- How do I go about adding or removing names (transfer of equity) to or from my Atom Bank mortgage account?
- My ex-fiance and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Atom Bank. I want to avoid being ripped off and there's so many conveyancing organisations who do transfer of equity conveyancing to pick from...who's the best?
Questions that your lawyer could ask in relation to your Atom Bank Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Have you approached Atom Bank to obtain consent to the 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 let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Caveats to be read in supporting the above Atom Bank transfer of equity information :
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
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. 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.
If the transfer of equity is made pursuant to 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 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 market value of the property at the time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor 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.
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.