Top seven questions relating to Bank of Ireland transfer of equity
- My mum passed away seven months ago leaving a unencumbered bungalow to me and my brother 50:50. Having continues to reside at the property, there was a condition in her will specifying that the propertycould not be sold for 24 months following her passing so he could reside there for a specified time frame. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
- I am in the process of removing a name from a joint mortgage and the Bank of Ireland require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Friern Barnet
conveyancer to deal with the transfer of equity? They need to be on the Bank of Ireland conveyancing panel.
- I bought a property with a friend in 2008 Since then, 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 value the lender hold and what the property would sell for currently. Can you offer any advice?
- When it comes to transfer of equity conveyancing involving a remortgage with Bank of Ireland should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I co-own a apartment in Timperley
, with a Bank of Ireland loan with my former husband. He and his new partner are going to buy me out. We had approval from Bank of Ireland to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Bank of Ireland (apparently). Can we do the Land Registry formalities?
- Can you tell me how to have someone removed off the deeds to a house where the home loan is with Bank of Ireland
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Bank of Ireland - and have been quoted £250 including VAT by Bank of Ireland's approved conveyancing solicitor, Have I been over quoted?
Information that may be required from your lawyer is likely to ask regarding your Bank of Ireland Transfer of Equity
Has consent been obtained from Bank of Ireland to the proposed transfer of equity?
If 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?
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?
Please inform us where you are making any payment for the Transfer of Equity and to whom and specify any such sums?
Who will be responsible for the costs of the Transfer of Equity?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Information to consider in conjunction with 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
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 conditions are not complied with 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 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 varies based on the valuation of the property at finalisation 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 conveyancer 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.