Frequently asked questions relating to Bank of Ireland transfer of equity

• My mum died early last year leaving a unencumbered house to me and my half brother equally. He has always lived in the house, there was a condition in her will specifying that the propertycould not be sold for 24 months following her death so he could remain there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to buy my equity?
• How and when do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage with Bank of Ireland?
• I co-own a apartment in Wakefield , with a Bank of Ireland loan with my ex husband. Him and his new partner are going to acquire my share. We had approval from Bank of Ireland to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Bank of Ireland (apparently). Can we deal with the Land Registry change?
• I bought a flat with my brother six years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Bank of Ireland mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• The mortgage broker has suggested using their lawyer for our Transfer of Equity plus remortgage with Bank of Ireland - Is it not simpler advisable to just use them?
• My existing home loan is with Bank of Ireland. Can I transfer equity to someone who is not yet eighteen years old?
• I am trying to find a lawyer to handle my transfer of equity. Bank of Ireland are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he will likely receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?

Information that may be required from your conveyancer could ask regarding your Bank of Ireland Transfer of Equity

Information to consider in supplemental the above Bank of Ireland transfer of equity Info :

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 conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in 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 breach 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 as a result of 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 conveyancing solicitor will check with Bank of Ireland 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 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Bank of Ireland 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 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.

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.