Common questions relating to Banks and Clients transfer of equity

• Will I incur any fees for a Transfer of Equity where the existing home loan is with Banks and Clients?
• I purchased a property with my brother five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Banks and Clients mortgage. There is a 40k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• Been looking at consumer forums that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously switching mortgage with Banks and Clients
• I currently have a joint Banks and Clients mortgage with my cousin and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
• How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my house in my name alone which is taking place simultaneously with a remortgage via Banks and Clients?
• My fiance and myself have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Banks and Clients are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Banks and Clients?

Information that may be required from your lawyer is likely to ask regarding your Banks and Clients Transfer of Equity

General Advice to read in conjunction with 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 require that you obtain the consent of the freeholder. If such restrictions 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 pursuant to 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 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 conclusion 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 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 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.