Recently asked questions relating to Cynergy Bank transfer of equity

• Me and my partner co-own a property in Sedgefield . Home loan is with Cynergy Bank. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be straightforward?
• Is it sensible to cancel my mortgage payments with Cynergy Bank once a date for my remortgage and transfer of equity has been agreed?
• Having been a number of years apart I have made the decision to give up my share of our property to my husband who is refinancing with Cynergy Bank. Could this transfer of equity be done in one month?
• My mum died half a year ago leaving a unencumbered bungalow to me and my half brother in equal shared. He has always lived in the premises, there was a clause in the will saying the housecould not be sold for 2 years following her passing so he could reside there for a while. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to buy my share?
• Can I apply to borrow a further advance from Cynergy Bank as part of a Transfer of Equity?
• Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Cynergy Bank?
• I currently have a joint Cynergy Bank mortgage with my cousin and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is approx 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty due?

Sample of information requested in a lawyer form relating to Cynergy Bank Transfer of Equity

Information to consider in in addition to the above Cynergy Bank transfer of equity Questions and Answers :

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 Cynergy Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 Cynergy 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 Cynergy 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.

Preparing the Transfer of Equity with a Cynergy 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 Cynergy 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 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.