Bank of Ireland transfer of equity: q and a’s
- I got my Decree Absolute three years ago. I simply never dealt with the transfer ownership from the current 'joint' status 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 (financial checks done). Does my ex need a solicitor?
- I am disposing of my equity in flat in Hendon to the other co-owners husband, they are reapplying to Bank of Ireland. We are in heated discussion as to who must pay the fees for the transfer of equity. Is this usually shared or is one party liable for the fees for?
- What can I do where I am dissatisfied with the lawyer who handled our transfer of equity transaction?
- My mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with Bank of Ireland - Surely it’s better to just use them?
- I am in the process of removing a name from a joint mortgage and the Bank of Ireland need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Littleborough
conveyancing solicitor to deal with the transfer of equity? They need to be on the Bank of Ireland conveyancing panel.
- Have recently split up with my wife of twenty years. I'm now back with my mum and dad and she wants to stay in the flat and pay me off. What portion do I get. Is it half of the equity after paying off the mortgage with Bank of Ireland? I assume proper valuations are required but I really need ensure that I'm getting I am not being taken advantage of
- Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Bank of Ireland?
Examples of questions in a conveyancer form concerning a Bank of Ireland Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please provide a copy of your National Insurance Number?
Have you approached Bank of Ireland to obtain consent to the Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supporting 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 properties
If your property is leasehold, provisions in the lease may require 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.
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 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 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 the time of completion of the transfer of equity transaction.
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 conveyancing solicitor 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.
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.