Common questions relating to Bank of Ireland transfer of equity
- At what point do I incur stamp duty payable for the transfer of equity in my home in my sole name which is happening at the same time as a remortgage via Bank of Ireland?
- My ex are seeking to get a conveyancing solicitor lined up for a refinance with Bank of Ireland. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
- Three years ago I bought a apartment without my partner's name on the deeds. My conveyancing solicitor claimed it is because she was not in the loan offer with Bank of Ireland. Is it possible for me to add her name on the title?
- Will I have to pay any charges for a Transfer of Equity where the current home loan is with Bank of Ireland?
- I got divorced two years ago. Foolishly I never dealt with the change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Bank of Ireland is happy to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- I currently have a joint Bank of Ireland mortgage with my step-brother and am looking into the possibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
- I co-own a house in Rye
, with a Bank of Ireland mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Bank of Ireland to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Bank of Ireland (apparently). In order to save fees can I deal with the Land Registry change?
Examples of information requested in a lawyer form relating to Bank of Ireland Transfer of Equity
Have you approached Bank of Ireland to seek consent to the Transfer of Equity
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Will there 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 the same
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read in further to the above Bank of Ireland transfer of equity information :
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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in 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 lawyer 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 the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Bank of Ireland your property may be repossessed.
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 lawyer 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.
