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Bank of Ireland

Frequently asked questions relating to Bank of Ireland transfer of equity

  • My partner and I equally own a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on rental income. Assuming Bank of Ireland are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Bank of Ireland?
  • My current home loan is with Bank of Ireland. Can I transfer equity to someone under 18 years old?
  • How and when do I incur stamp duty payable for the transfer of equity in my home in my name alone which is happening at the same time as a refinancing with Bank of Ireland?
  • Our mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Bank of Ireland - Surely it’s advisable to just instruct them?
  • My decree absolute is through as is the consent order. Now I have to deal with the transfer of equity for the property and the Bank of Ireland home loan. I have contacted Bank of Ireland for the transfer of equity forms. What do I do now?
  • My Bank of Ireland mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Bank of Ireland have consented to the transfer of equity to my individual name. Do Bank of Ireland contact my boss to check my salary?

Information that may be required from your conveyancing solicitor is likely to ask regarding your Bank of Ireland Transfer of Equity

Please give the name(s) and addresse(s) of those who jointly own the premises with you?

Please provide the details of anyone to be removed from the property title?

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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?

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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 Info :

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 have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of 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 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 the time of completion 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 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 conveyancing solicitor 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