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Questions and answers: Atom Bank transfer of equity

  • The financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Atom Bank - won’t it be better to just use them?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Atom Bank?
  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
  • My brother and I got a joint mortgage with Atom Bank on a apartment about a year ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential issue with Atom Bank with him being responsible for the total loan as opposed to only part of it?
  • Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Atom Bank?
  • How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a refinancing with Atom Bank?
  • I am in the market for a responsive conveyancing solicitor to help me sell in a transfer of equity and remortgage with Atom Bank. I really don't want to get ripped off but with so many conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?

Information that may be required from your conveyancer is likely to ask about your Atom Bank Transfer of Equity

Please give the name(s) and addresse(s) of those who jointly own the property with you?

Is the transfer of equity subject to a court order? If yes please supply a copy

Have you approached Atom Bank to obtain consent to the Transfer of Equity

Please provide a copy of your National Insurance Number?

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

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

General Advice to read 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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on 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.


Frequently asked questions relating to Atom Bank transfer of equity