Frequently asked questions relating to Atom Bank transfer of equity
- I jointly own a property in Timperley
, with a Atom Bank mortgage with my ex partner. He and his new partner are going to buy me out. We had the go ahead from Atom Bank to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Atom Bank (supposedly). In order to save fees can I do the Land Registry formalities?
- At what stage do I pay the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage with Atom Bank?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Atom Bank?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Atom Bank?
- I got divorced in 2010. I simply never dealt with the transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Atom Bank is content to transfer the full equity in my name (affordability checks done). Does she need a solicitor?
- I am looking for a conveyancer to deal with my transfer of equity. Atom Bank are dealing with the remortgage. I considered asking my mortgage broker. I am lead to believe he may receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- Law week I separated from my ex of twenty years. I'm now living with my mum and dad and she wants to stay in the flat and pay me off. What percentage am I entitled to. Is it half of the equity after redeeming the Atom Bank home loan? I assume proper valuations are required but I would like to be confident that I'm getting I am not being walked over
Examples of information requested in a conveyancer form concerning a Atom Bank Transfer of Equity
Can you provide the details of anyone who jointly owns the property with you?
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be removed from the title deeds?
Has consent been obtained from Atom Bank to the proposed transfer of equity?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Information to consider in supporting 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 obtain the consent of the freeholder. If such conditions are not complied with 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
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 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.