Questions and answers: Atom Bank transfer of equity
- I got divorced in 2011. Foolishly I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Atom Bank is happy to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
- I am in the process of refinancing my house in Wakefield
does my lawyer have to be on the Atom Bank Solicitor panel. The conveyancing also involves a transfer of equity.
- Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Atom Bank?
- I am looking for a conveyancing solicitor to deal with my transfer of equity. Atom Bank have been approached for a remortgage. I considered asking my mortgage broker. I understand he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity for the property and the Atom Bank mortgage. I have called Atom Bank for the transfer of equity forms. What happens next?
- I currently have a joint Atom Bank mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a place with my fiance. The outstanding mortgage is approx 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty payable?
- I am in the process of removing a name from a joint mortgage and the Atom Bank require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Crabtree
conveyancer to deal with the transfer of equity? They need to be on the Atom Bank conveyancing panel.
Sample of questions in a conveyancing solicitor form relating to Atom Bank Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please provide the details of anyone to be extracted from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Information to consider in further to the above Atom Bank transfer of equity Advice :
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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 is dependent on the market value 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 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.
Content 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.