Atom Bank transfer of equity example support desk enquires

• My father died early last year leaving a unencumbered property to me and my brother 50:50. He has always lived in the premises, there was a clause in the will saying the housecould not be sold for three years after her death so he could remain there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
• Atom Bank have just agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Atom Bank?
• I plan to remortgage my maisonette in Littleborough moving from Coventry BS to Atom Bank. The maisonette is jointly owned but I would like it to be in my sole name as and when I switch. My wife has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancer involved.
• I am trying to find a conveyancer to undertake my transfer of equity. Atom Bank are dealing with the refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic correct?
• Can I apply to borrow a further advance from Atom Bank as part of a Transfer of Equity?
• I got divorced in 2012. Foolishly I never got around to transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Atom Bank is happy to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?

Information that may be required from your conveyancer may ask in relation to your Atom Bank Transfer of Equity

Caveats to be read in supplemental 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 titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Atom Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 provided 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.