Recently asked questions relating to Cynergy Bank transfer of equity

• Is it sensible to cancel my mortgage payments with Cynergy Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• Is it possible to transfer the equity held in my property with my Cynergy Bank mortgage?
• My fiance and myself have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name to mitigate tax on rental income. Assuming Cynergy Bank are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• In 2012 I bought a apartment without my fiance’s name on the title. My conveyancer claimed it is because she is not in the mortgage with Cynergy Bank. Is it possible for me to put her name on the documents at HM Land Registry?
• I got my Decree Absolute four years ago. Foolishly I never dealt with the transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Cynergy Bank is willing to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
• I already have a mortgage with Cynergy Bank and am retaining my current mortgaging but applying to have it in my name only so my former husband will no longer be on the title. How long can it take for the application to be processed?
• Me and my former husband and I are in the market for a dependable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Cynergy Bank. I want to avoid being ripped off and there's plenty conveyancing firms who do transfer of equity conveyancing to pick from...who do I opt for?

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

Information to consider in further to the above Cynergy Bank transfer of equity Advice :

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 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 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 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 finalisation of the transfer of equity conveyancing.

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.

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.