Atom Bank transfer of equity: q and a’s
- My Atom Bank home loan is in joint names with ex, who has agreed to be removed and put the house in my name alone. Atom Bank will permit the transfer of equity to my individual name. Do Atom Bank call my company to confirm my salary?
- Am I best advised cancel the direct debit for my mortgage with Atom Bank as soon as a date for my remortgage and transfer of equity has been agreed?
- I am planning on removing a name from a joint mortgage and the Atom Bank require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Rye
conveyancer to deal with the transfer of equity? They need to be on the Atom Bank conveyancing panel.
- I am in the process of remortgaging my flat in Wakefield
does my lawyer have to be on the Atom Bank Solicitor panel. The conveyancing also involves a transfer of equity.
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I need to transfer equity and refinance - new loan with Atom Bank - and have been quoted £350 excluding VAT by Atom Bank's appointed lawyer, Have I been over quoted?
- Have recently separated from my wife of twenty years. I'm now back with my parents again and she wants to stay in the apartment and pay me off. What percentage am I entitled to. Is it half of the equity after redeeming the mortgage with Atom Bank? I assume proper valuations are required but I would like to be sure that I'm getting I am not being walked over
- I am disposing of my share of a property in Woodside to the other co-owners fiance, they are reapplying to Atom Bank. We are in heated discussion as to who must cover the charges for the transfer of equity. Is this normally split or is one of us liable for the charges for?
Sample of information requested in a conveyancing solicitor questionnaire relating to Atom Bank Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Where you are adding someone 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” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Atom Bank to seek consent to the Transfer of Equity
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide a copy of your National Insurance Number?
Caveats to be read in supplemental 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 titles
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 terms are not adhered to you may be in violation of 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 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 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 is dependent on the valuation of the property at the conclusion 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 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.