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Banks and Clients transfer of equity: q and a’s

  • I co-own a flat in Littleborough , with a Banks and Clients mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Banks and Clients to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Banks and Clients (apparently). Can we deal with the Land Registry formalities?
  • My Banks and Clients home loan we jointly entered into with ex, he is agreeable to come off the mortgage and let me have the property. Banks and Clients will permit the transfer of equity to my individual name. Do Banks and Clients call my employer to verify my salary?
  • How much the typical legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Banks and Clients - and have been quoted £250 excluding VAT by Banks and Clients's appointed conveyancing solicitor, Have I been over quoted?
  • Can I transfer the equity held in my property with my Banks and Clients home loan?
  • I am trying to find a conveyancing solicitor to undertake my transfer of equity. Banks and Clients have been approached for a remortgage. I considered asking my mortgage broker. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
  • My partner and I co-own a flat in Rye . Mortgage is with Banks and Clients. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be simple?
  • When it comes to transfer of equity conveyancing involving refinance with Banks and Clients should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Sample of questions in a lawyer form concerning a Banks and Clients Transfer of Equity

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

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

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.

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

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Important warnings to consider in supporting the above Banks and Clients transfer of equity Advice :

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 titles

Should the tenure of your property be 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.

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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
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 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 conveyancer 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 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