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Questions and answers: Banks and Clients transfer of equity

  • I already have a mortgage with Banks and Clients and am maintaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my ex will be removed from the mortgage. How long does the whole transfer of equity process take?
  • I purchased a house with a friend in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Banks and Clients mortgage. There is a 30k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Banks and Clients?
  • How do I go about adding or subtracting names (transfer of equity) to or from my Banks and Clients mortgage account?
  • I am answering a Banks and Clients transfer of equity form and have arrived at the part regarding defaults etc. I do some debts that I have been paying off for a number of years, in fact they no longer remain my credit records. Must I set these out?
  • Two years ago I bought a apartment without my wife's name on the title documents. My conveyancing solicitor advised it is due to the fact that she is not in the mortgage with Banks and Clients. I'm wondering is there any way that I can add her name on the deeds?
  • I currently have a joint Banks and Clients mortgage with my brother and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is about 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?

Questions that your conveyancing solicitor is likely to ask regarding your Banks and Clients Transfer of Equity

Please give the details of anyone to be added to the title deeds?

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

Please provide 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” Questionnaire.

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Important warnings to consider in supplemental 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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under 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 the conclusion 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 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 conveyancing solicitor 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 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