Bank of Ireland Mortgages transfer of equity: q and a’s
- My ex are seeking to get a conveyancer in place for a new mortgage with Bank of Ireland Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. How necessary is it to appoint a conveyancing solicitor local to us?
- Law week I split up with my wife of 18 years. I'm now living with my parents again and she wishes to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Bank of Ireland Mortgages? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
- Is it sensible to stop the direct debit for my mortgage with Bank of Ireland Mortgages once a date for my remortgage and transfer of equity has been agreed?
- My divorce is through as is the consent order. Now I have to address the transfer of equity at the land registry and the Bank of Ireland Mortgages home loan. I have called Bank of Ireland Mortgages for the transfer of equity forms. What do I do now?
- My partner and myself have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name to mitigate tax on rental income. If Bank of Ireland Mortgages are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Can you tell me how to have someone removed off the deeds to a house where the home loan is with Bank of Ireland Mortgages
- I recently purchased a property without my partner's name on the ownership paperwork. My lawyer advised it is due to the fact that she is not in the loan offer with Bank of Ireland Mortgages. Is it possible for me to add her name on the deeds?
Questions that your conveyancer is likely to ask about your Bank of Ireland Mortgages Transfer of Equity
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Bank of Ireland Mortgages to the proposed transfer of equity?
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Information to consider in conjunction with the above Bank of Ireland Mortgages transfer of equity information :
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 Bank of Ireland Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer 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 the conclusion 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 conveyancer 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 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.