Bank of Ireland Mortgages transfer of equity: q and a’s
- Me and a friend got a joint mortgage with Bank of Ireland Mortgages on a apartment in 2013. I am now thinking of buying a apartment by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential issue with Bank of Ireland Mortgages with him being responsible for the total mortgage as opposed to only part of it?
- I am trying to find a conveyancer to handle my transfer of equity. Bank of Ireland Mortgages are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- I am in the process of removing a name from a joint mortgage and the Bank of Ireland Mortgages require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Rye
conveyancing solicitor to deal with the transfer of equity? They need to be on the Bank of Ireland Mortgages conveyancing panel.
- I jointly own a property in Miles Platting
, with a Bank of Ireland Mortgages mortgage with my ex partner. Him and his new partner are going to acquire my share. We had the go ahead from Bank of Ireland Mortgages to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Bank of Ireland Mortgages (apparently). Can we do the Land Registry formalities?
- My current mortgage is with Bank of Ireland Mortgages. Can I transfer equity to someone who is not yet 18 years old?
- I am completing a Bank of Ireland Mortgages transfer of equity request and have arrived at the questions concerning debts etc. There are some debts that I have been clearing over a long period, in fact they no longer remain my credit records. Am I obliged to declare these?
- I got my Decree Absolute two years ago. I simply never got around to change the ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Bank of Ireland Mortgages is willing to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
Information that may be required from your conveyancer is likely to ask in relation to your Bank of Ireland Mortgages Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Can you give 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
Have you approached Bank of Ireland Mortgages to obtain consent to the Transfer of Equity
Caveats to be read in conjunction with the above Bank of Ireland Mortgages 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 Bank of Ireland Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is 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 complied with 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 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 lawyer will check with Bank of Ireland Mortgages 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 Bank of Ireland Mortgages 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 Bank of Ireland Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Bank of Ireland Mortgages 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 Bank of Ireland Mortgages 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.
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.