Questions and answers: Cynergy Bank transfer of equity

• My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity for the property and the Cynergy Bank mortgage. I have called Cynergy Bank for the transfer of equity forms. What are my next steps?
• My mum died half a year ago leaving a unencumbered semi to me and my half brother in equal shared. Having continues to reside at the premises, there was a provision in the will specifying that the propertycould not be sold for 2 years following her passing so he could reside there for a prescribed period. 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 should get a valuation then he'd get a home loan in the conventional way to buy my equity?
• When it comes to transfer of equity conveyancing involving refinance with Cynergy Bank should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Is there such a thing a transfer of equity stamp duty calculator?
• My -ex-husband and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Cynergy Bank. I I am concerned about appointing the wrong one and there are lots of conveyancing solicitors who do transfer of equity conveyancing to choose from...who's the best?
• I intend to refinance my maisonette in Winchelsea moving from RBS to Cynergy Bank. The home is jointly owned but I would like it to be in my name only when I remortgage. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
• I am disposing of my share of a flat in Woodside to the other co-owners husband, they are sticking with Cynergy Bank as the the existing mortgage company. We are in heated discussion as to who should cover the fees for the transfer of equity. Should this be shared or is one party obliged to cover the costs of?

Examples of questions in a conveyancer form relating to Cynergy Bank Transfer of Equity

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

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 properties

Should the tenure of your property be 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 trigger 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 lawyer 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 valuation of the property at the time of completion 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 conveyancer 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 conveyancer 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 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.