Frequently asked questions relating to Banks and Clients transfer of equity
- My father died early last year leaving a unencumbered bungalow to me and my brother in equal shared. He has always lived in the premises, there was a condition in her will specifying that the housecould not be sold for 24 months after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the house beyond the specified 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 home loan in the usual way to acquire my half from me?
- My friend and I got a joint mortgage with Banks and Clients on a apartment about a year ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Is there likely to be any issue with Banks and Clients with him being responsible for the total loan as opposed to only part of it?
- How and when do I cover the costs of stamp duty due for the transfer of equity in my home in my name alone which is taking place simultaneously with a remortgage with Banks and Clients?
- My existing home loan is with Banks and Clients. Can I transfer equity to someone under 18 years old?
- The financial adviser has recommended their conveyancer for my Transfer of Equity plus remortgage with Banks and Clients - won’t it be advisable to just use them?
- I am trying to find a lawyer to deal with my transfer of equity. Banks and Clients have been approached for a remortgage. I thought of asking my mortgage broker. I am lead to believe he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic misguided?
- Having been 2 a couple of years apart I have made the decision to relinquish up my interest in our property to my husband who is re-mortgaging with Banks and Clients. Could this transfer of equity be done in less than four weeks?
Information that may be required from your conveyancing solicitor may ask about your Banks and Clients Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please provide a copy of your National Insurance Number?
Is it the case that one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Has consent been obtained from Banks and Clients to the proposed transfer of equity?
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” Form.
Please provide the details of those who jointly own the premises with you?
Important warnings to consider in in addition 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 properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Banks and Clients.
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.
Content 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.