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Bank of Ireland

Top seven questions relating to Bank of Ireland transfer of equity

  • I am filling out a Bank of Ireland transfer of equity form and have arrived at the section regarding debts etc. There are some debts that I have been paying off over a long period, I understand that they have long since disappeared from my credit rating. Must I set these out?
  • My Bank of Ireland mortgage we jointly entered into with ex, he has agreed to come off the deeds and let me have the property. Bank of Ireland have consented to the transfer of equity to my individual name. Will Bank of Ireland get in touch with my employer to check my salary?
  • What are my options where I am not happy with the conveyancing solicitor who carried out my transfer of equity conveyancing?
  • My decree absolute is through as is the consent order. Now I need to address the transfer of equity at the HMLR and the Bank of Ireland home loan. I have contacted Bank of Ireland for the transfer of equity application. What do I do now?
  • I co-own a apartment in Heathfield , with a Bank of Ireland loan with my former husband. He and his new partner are going to acquire my share. We had approval from Bank of Ireland to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Bank of Ireland (apparently). Is it possible for us to do the Land Registry formalities?
  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
  • Can you tell me how to have someone removed off the deeds to a property where the mortgage is with Bank of Ireland

Examples of questions in a conveyancer form concerning a Bank of Ireland Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please provide a copy of your National Insurance Number?

Please give the details of anyone to be extracted from the property title?

Caveats to be read in supporting the above Bank of Ireland transfer of equity Advice :

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 premises

Should the tenure of your property be 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 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 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 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 varies based on the market value 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 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.

Information contained within 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.


Frequently asked questions relating to Bank of Ireland transfer of equity