Top seven questions relating to Bank of Ireland Mortgages transfer of equity
- I am planning on removing a name from a joint mortgage and the Bank of Ireland Mortgages need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Wakefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the Bank of Ireland Mortgages conveyancing panel.
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Bank of Ireland Mortgages?
- As things stand I have a joint Bank of Ireland Mortgages mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is approx 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
- Is it possible to apply to borrow a further advance from Bank of Ireland Mortgages as part of a Transfer of Equity?
- I co-own a house in Romsey
, with a Bank of Ireland Mortgages mortgage with my former partner. He 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 has to be completed by a lawyer for Bank of Ireland Mortgages (supposedly). In order to save fees can I deal with the Land Registry formalities?
- What if my application doesn't meet Bank of Ireland Mortgages lending criteria for a transfer of equity?
- I am answering a Bank of Ireland Mortgages transfer of equity application and have come to the part concerning debts etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit rating. Do I need to disclose these?
Questions that your conveyancer could ask regarding your Bank of Ireland Mortgages Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Have you approached Bank of Ireland Mortgages to obtain consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in in addition to the above Bank of Ireland Mortgages transfer of equity Info :
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 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 violation of the lease. This could potentially result in 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 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 valuation of the property at the conclusion of the transfer of equity conveyancing.
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 conveyancing solicitor 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 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.