Frequently asked questions relating to Atom Bank transfer of equity
- I am planning on removing a name from a joint mortgage and the Atom Bank require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Heathfield
conveyancer to deal with the transfer of equity? They need to be on the Atom Bank conveyancing panel.
- I already have a home loan with Atom Bank and am keeping my current mortgaging but wish to have it in my sole name so my former wife will no longer be on the title. How long does the whole transfer of equity process take?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Atom Bank?
- My former husband are planning to get a lawyer lined up for a refinance with Atom Bank. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over UK. How necessary is it to instruct a lawyer local to us?
- Am I best advised stop the direct debit for my mortgage with Atom Bank once a date for my remortgage and transfer of equity has been agreed?
- My dad passed away last January leaving a mortgage-free bungalow to me and my brother in equal shared. He has always lived in the house, there was a provision in her will saying the housecould not be sold for three years following her passing so he could remain there for a while. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my half from me?
- I got divorced in 2010. Foolishly I never dealt with the transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Atom Bank is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
Information that may be required from your conveyancing solicitor is likely to ask about your Atom Bank Transfer of Equity
Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Atom Bank to the proposed transfer of equity?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
General Advice to 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 landlord. If such conditions are not strictly observed you may be in violation 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 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 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 valuation of the property at the time of completion 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 conveyancing solicitor 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.