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Questions and answers: Banks and Clients transfer of equity

  • My fiance and myself jointly own a investment property. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If Banks and Clients are happy with this the legal fees are not prohibitive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • I plan to refinance my home in Crabtree changing from Bank of Scotland to Banks and Clients. The maisonette is jointly owned but propose for it to be in my name only as and when I switch. My husband is OK with this and is happy to sign a form but neither of us want to incur conveyancer charges.
  • I purchased a property with my brother five.seven years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Banks and Clients mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • Banks and Clients have just agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
  • My decree absolute is through as is the consent order. Now I need to sort out the transfer of equity for the property and the Banks and Clients home loan. I have contacted Banks and Clients for the transfer of equity application. What do I do now?
  • My Banks and Clients home loan we jointly entered into with ex, he has agreed to be removed and let me have the property. Banks and Clients will permit the transfer of equity to my individual name. Will Banks and Clients get in touch with my employer to verify my salary?
  • My existing home loan is with Banks and Clients. Can I transfer equity to someone less than eighteen years old?

Examples of questions in a lawyer questionnaire concerning a Banks and Clients Transfer of Equity

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 give the details of anyone to be added to the property title?

Who will be responsible for the costs of the Transfer of Equity?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

Please give the name(s) and addresse(s) of anyone to be removed from the property title?

If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

General Advice to read in supplemental the above Banks and Clients transfer of equity Questions and Answers :

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 Banks and Clients conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 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 valuation of the property at the conclusion 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 conveyancer 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.


Frequently asked questions relating to Banks and Clients transfer of equity