Sample questions relating to Banks and Clients transfer of equity

• I currently have a joint Banks and Clients mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
• I am hoping to remortgage my home in Romsey switching from Chelsea BS to Banks and Clients. The home is currently in joint names but intend for it to be in my name only when I switch. My wife has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• The mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Banks and Clients - Is it not simpler better to just use them?
• What are my options where I am dissatisfied with the conveyancer who undertook our transfer of equity conveyancing?
• I am in the process of removing a name from a joint mortgage and the Banks and Clients need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Miles Platting lawyer to deal with the transfer of equity? They need to be on the Banks and Clients conveyancing panel.
• 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 financial adviser. I understand he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Banks and Clients?

Questions that your conveyancer may ask regarding your Banks and Clients Transfer of Equity

Information to consider in in addition to 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

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 conditions are not strictly observed you may be in violation of your covenants under 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.

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 contained within 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.