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Bank of Cyprus UK

Top seven questions relating to Cynergy Bank transfer of equity

  • I am filling out a Cynergy Bank transfer of equity application and have come to the part that asks about defaults etc. There are some debts that I have been paying off for a number of years, in fact they no longer remain my credit records. Must I declare these?
  • My Cynergy Bank home loan we jointly entered into with ex, he is agreeable to come off the mortgage and let me have the property. Cynergy Bank will permit the transfer of equity to my individual name. Will Cynergy Bank write my boss to check my salary?
  • I am considering refinancing my house in Winchelsea does my lawyer have to be on the Cynergy Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
  • At what point do I pay stamp duty payable for the transfer of equity in my home in my name alone which is taking place simultaneously with a refinancing with Cynergy Bank?
  • I am am in need of a conveyancing solicitor to handle my transfer of equity. Cynergy Bank have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
  • What do I do if I am not happy with the conveyancer who carried out my transfer of equity conveyancing?
  • I am hoping to refinance my apartment in Blaenavon switching from Leeds Building Society to Cynergy Bank. The flat is currently in joint names but I would like it to be in my sole name as and when I transfer. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.

Examples of information requested in a conveyancer questionnaire concerning a Cynergy Bank Transfer of Equity

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please inform us where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?

Who will be responsible for the costs of the Transfer of Equity?

Please provide a copy of your National Insurance Number?

Have you approached Cynergy Bank to obtain consent to the Transfer of Equity

Information to consider in supporting the above Cynergy Bank transfer of equity information :

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 Cynergy 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 conditions are not strictly observed you may be in breach of 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 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Cynergy Bank your property may be repossessed.

Preparing the Transfer of Equity with a Cynergy 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 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.

Information contained within 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.


Frequently asked questions relating to Bank of Cyprus UK transfer of equity