Common questions relating to Bank of Ireland transfer of equity
- After 5 years separated I have decided to transfer my share of the flat to my husband who is re-mortgaging with Bank of Ireland. Can a transfer of equity be done in 28 days?
- Law week I split up with my wife of thirty years. I'm now back with my parents again and she wishes to remain in the property and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the Bank of Ireland home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
- I am answering a Bank of Ireland transfer of equity form and have come to the part concerning defaults etc. There are some debts that I have been clearing over a long period, in fact they have long since disappeared from my credit score. Am I obliged to disclose these?
- I am looking for a lawyer to undertake my transfer of equity. Bank of Ireland are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
- Is it sensible to stop my mortgage payments with Bank of Ireland once a date for my remortgage and transfer of equity has been agreed?
- I got my Decree Absolute four years ago. For some reason I never got around to change the ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Bank of Ireland is content to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
- My decree absolute has gone through as is the consent order. Now I must address the transfer of equity at the HMLR and the Bank of Ireland home loan. I have asked Bank of Ireland for the transfer of equity forms. What are my next steps?
Information that may be required from your conveyancing solicitor could ask in relation to your Bank of Ireland Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
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 the details of anyone to be added to the property title?
Who will be responsible for the costs of the 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?
Caveats to be read in supplemental the above Bank of Ireland 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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
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 conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bank of Ireland.
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 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.