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Banks and Clients transfer of equity example support desk enquires

  • What are the average legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Banks and Clients - and have been quoted £250 plus VAT by Banks and Clients's approved lawyer, Is this is a good price or not?
  • I acquired a property with my cousin six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Banks and Clients mortgage. There is a significant difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
  • My current mortgage is with Banks and Clients. Can I transfer equity to someone who is not yet 18 years old?
  • My partner and I co-own a house in Crabtree . Mortgage is with Banks and Clients. I wish to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be easy to so?
  • I am considering remortgaging my apartment in Timperley does my lawyer have to be on the Banks and Clients Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Have recently separated from my partner of 18 years. I'm now back with my parents again and she wishes to stay in the apartment and pay me off. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Banks and Clients? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
  • As things stand I have a joint Banks and Clients mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?

Examples of information requested in a conveyancer form relating to Banks and Clients Transfer of Equity

Please provide a copy of your National Insurance Number?

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

Has one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please clarify if you are making any payment for the Transfer of Equity and to whom and disclose any such sums?

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

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Information to consider in in addition to the above Banks and Clients transfer of equity Advice :

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, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 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 conveyancer 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 finalisation 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 lawyer 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 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 should not be regarded as 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