Sample questions relating to Bank of Ireland transfer of equity
- The mortgage broker has recommended their conveyancer for my Transfer of Equity plus remortgage with Bank of Ireland - Is it not simpler easier to just use them?
- I am completing a Bank of Ireland transfer of equity form and have come to the part that asks about defaults etc. I do some debts that I have been paying off since 2007, I understand that they no longer remain my credit records. Am I obliged to disclose these?
- Me and my former partner and I are are seeking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Bank of Ireland. I really don't want to get ripped off but with lots of conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
- Is it sensible to stop the direct debit for my mortgage with Bank of Ireland as soon as a date for my remortgage and transfer of equity has been set?
- I am selling my equity in house in Warwick to the other co-owners husband, they are reapplying to Bank of Ireland. We are debating as to who must cover the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?
- As things stand I have a joint Bank of Ireland mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is approx 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Bank of Ireland
Examples of questions in a lawyer questionnaire relating to Bank of Ireland Transfer of Equity
Please provide the details of anyone to be extracted from the property title?
Please give the name(s) and addresse(s) of those who jointly own the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Where you 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?
Is the transfer of equity subject to a court order? If yes please supply a copy
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in conjunction with 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
If your property is 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 conditions are not strictly observed 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 pursuant to 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 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 valuation of the property at finalisation 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.