Frequently asked questions relating to Cynergy Bank transfer of equity
- My partner and I have equal shares in a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If Cynergy Bank are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- I co-own a flat in Ampthill , with a Cynergy Bank mortgage with my ex partner. Him and his fiance are going to buy me out. We had approval from Cynergy Bank to replace my name with hers. The transfer of equity has to be completed by a lawyer for Cynergy Bank (apparently). In order to save fees can I do the Land Registry formalities?
- Me and a friend got a joint mortgage with Cynergy Bank on a property about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential issue with Cynergy Bank with him being responsible for the total mortgage as opposed to only part of it?
- Is it possible to apply to borrow a further advance from Cynergy Bank as part of a Transfer of Equity?
- My Cynergy Bank home loan is in joint names with ex, he has agreed to be removed and let me have the property. Cynergy Bank have consented to the transfer of equity to my individual name. Do Cynergy Bank get in touch with my boss to confirm my salary?
- The financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Cynergy Bank - Is it not simpler advisable to just instruct them?
- I am completing a Cynergy Bank transfer of equity request and have come to the section regarding defaults etc. There are some debts that I have been reducing for a number of years, I understand that they have long since disappeared from my credit score. Do I need to set these out?
Sample of questions in a conveyancer form concerning a Cynergy Bank Transfer of Equity
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
Caveats to be read 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 have a license to do so from the landlord. If such terms are not adhered to 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 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 conveyancer 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 conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Cynergy Bank.
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 conveyancing solicitor 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 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.
