Banks and Clients transfer of equity example support desk enquires
- My former husband are seeking to get a conveyancing solicitor in place for a remortgage with Banks and Clients. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?
- My brother and I got a joint mortgage with Banks and Clients on a apartment in 2013. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential concerns with Banks and Clients with him being on the hook for the total loan as opposed to only half of it?
- I am under the impression we would need at least AP1 and TR1. Is this true?
- My mum died early last year leaving a unencumbered property to me and my half brother in equal shared. Having continues to reside at the house, there was a clause in her will saying the propertycould not be sold for three years after her death so he could continue to live there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I am looking for a conveyancer to undertake my transfer of equity. Banks and Clients are dealing with the remortgage. I thought of asking my mortgage broker. I am lead to believe he may get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- My existing home loan is with Banks and Clients. Can I transfer equity to someone who is not yet 18 years old?
- Me and my former husband and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Banks and Clients. I really don't want to get ripped off and there's various conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
Questions that your conveyancing solicitor is likely to ask in relation to your Banks and Clients Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be extracted from the title deeds?
Please give the name(s) and addresse(s) of anyone to be added to 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 further 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?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Information to consider in further to the above Banks and Clients transfer of equity information :
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 Banks and Clients conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation 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 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 Banks and Clients 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 Banks and Clients 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 the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Banks and Clients your property may be repossessed.
Preparing the Transfer of Equity with a Banks and Clients 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 Banks and Clients 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.