Common questions relating to Atom Bank transfer of equity
- I already have a home loan with Atom Bank and am retaining my existing mortgaging but seeking to have have the equity transferred to my name only so my ex won't be on it any longer. How long can it take for the application to be processed?
- I own a house in Romsey
, with a Atom Bank mortgage with my ex husband. He and his fiance are going to acquire my share. We had the go ahead from Atom Bank to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for Atom Bank (apparently). In order to save fees can I do the Land Registry formalities?
- Law month I split up with my wife of twenty years. I'm now living with my mum and dad and she wants to stay in the apartment and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Atom Bank? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
- Is it sensible to stop my mortgage payments with Atom Bank once 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 Friern Barnet
conveyancer to deal with the transfer of equity? They need to be on the Atom Bank conveyancing panel.
- My Atom Bank home loan we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. Atom Bank have consented to the transfer of equity to my individual name. Do Atom Bank contact my employer to verify my salary?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Atom Bank - and have been quoted £350 plus VAT by Atom Bank's appointed lawyer, Is this is a good price or not?
Examples of questions in a conveyancer form concerning a Atom Bank Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Where you are intent on holding 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 give the details of anyone to be added to the property title?
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in supplemental the above Atom Bank transfer of equity information :
Tax and Legal
There may be various 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, 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 terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 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 market value of the property at the time of completion 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 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 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.