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Questions and answers: Bank of Ireland Mortgages transfer of equity

  • Law month I separated from my wife of twenty years. I'm now back with my parents again and she wishes to remain in the flat and pay me off. What portion am I entitled to. Is it half of the equity after redeeming the Bank of Ireland Mortgages home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
  • My mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Bank of Ireland Mortgages - won’t it be easier to just use them?
  • I own a apartment in Sedgefield , with a Bank of Ireland Mortgages loan with my ex husband. Him and his fiance are going to acquire my share. We had consent from Bank of Ireland Mortgages to replace my name with hers. The transfer of equity needs to be done by a lawyer for Bank of Ireland Mortgages (apparently). In order to save fees can I deal with the Land Registry formalities?
  • Three years ago I purchased a house without my partner's name on the title documents. My conveyancer advised it is because she was not in the loan offer with Bank of Ireland Mortgages. Is it possible for me to put her name on the title?
  • Me and a friend got a joint mortgage with Bank of Ireland Mortgages on a flat in 2013. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any problem with Bank of Ireland Mortgages with him being responsible for the total loan as opposed to only part of it?
  • My father passed away seven months ago leaving a unencumbered house to me and my brother in equal shared. He has always lived in the premises, there was a clause in her will specifying that the housecould not be sold for 24 months following her death so he could continue to live there for a prescribed period. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
  • Is it sensible to cancel the direct debit for my mortgage with Bank of Ireland Mortgages once a date for my remortgage and transfer of equity has been agreed?

Sample of information requested in a conveyancing solicitor form relating to 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 the transfer of equity has been formalised?

Please give the name(s) and addresse(s) of anyone to be extracted from the property title?

Is the transfer of equity subject to a court order? If yes please supply a copy

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Has consent been obtained from Bank of Ireland Mortgages to the proposed transfer of equity?

Caveats to be read in conjunction with the above Bank of Ireland Mortgages 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 Bank of Ireland Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under 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 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 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bank of Ireland Mortgages.

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 conveyancing solicitor 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 Ireland Mortgages transfer of equity