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Top seven questions relating to Banks and Clients transfer of equity

  • Is it possible to transfer the equity held in my property with my Banks and Clients home loan?
  • My wife and I jointly own a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to reduce our tax on rental income. If Banks and Clients are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • Is it possible to apply to request a further advance from Banks and Clients as part of a Transfer of Equity?
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Banks and Clients mortgage account?
  • I currently have a joint Banks and Clients mortgage with my brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is in the region 200k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
  • I am searching for a quality conveyancing lawyer to assist in a transfer of equity and remortgage with Banks and Clients. I am aware of the possibility of getting ripped off but with plenty conveyancing solicitors who do transfer of equity conveyancing to choose from...who do I opt for?
  • My current mortgage is with Banks and Clients. Can I transfer equity to someone who is not yet 18 years old?

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

Please provide a copy of your National Insurance Number?

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

Is the transfer of equity subject to a court order? If yes please supply a copy

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Has consent been obtained from Banks and Clients to the proposed transfer of equity?

Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Caveats to be read in in addition to the above Banks and Clients transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, provisions in 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 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 as a result of 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor 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