Top seven questions relating to Bank of Ireland Mortgages transfer of equity

• Me and a friend got a joint mortgage with Bank of Ireland Mortgages on a flat about a year ago. 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 a figure what are the next steps? Would there be any potential concerns with Bank of Ireland Mortgages with him being on the hook for the total loan as opposed to only half of it?
• My existing mortgage is with Bank of Ireland Mortgages. Can I transfer equity to someone under 18 years old?
• Law month I split up with my wife of 18 years. I'm now living with my mum and dad and she wishes to stay in the flat and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the Bank of Ireland Mortgages home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being taken advantage of
• Can I apply to request a further advance from Bank of Ireland Mortgages as part of a Transfer of Equity?
• I already have a mortgage with Bank of Ireland Mortgages and am retaining my existing mortgaging but seeking to have it in my sole name so my former wife will come off the mortgage. How long do Bank of Ireland Mortgages take to deal with the application?
• Given that we have been 2 a couple of years separated I have made the decision to relinquish up my share of our flat to my husband who is re-mortgaging with Bank of Ireland Mortgages. Could this transfer of equity be completed in less than four weeks?
• The financial adviser has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Bank of Ireland Mortgages - Is it not simpler better to just use them?

Information that may be required from your conveyancing solicitor is likely to ask about your Bank of Ireland Mortgages Transfer of Equity

Information to consider in in addition to the above Bank of Ireland Mortgages transfer of equity Advice :

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, 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 terms are not adhered to you may be in violation of 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.

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.

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.