Questions and answers: Bradford & Bingley transfer of equity

• Is it sensible to cancel my mortgage payments with Bradford & Bingley as soon as a date for my remortgage and transfer of equity has been set?
• I bought a property with a friend in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Bradford & Bingley mortgage. There is a 40k difference between the value the Bradford & Bingley hold and what the property would sell for currently. Can you offer any advice?
• My Bradford & Bingley mortgage we jointly entered into with ex, who is agreeable to come off the deeds and put the house in my name alone. Bradford & Bingley have consented to the transfer of equity to me solely. Will Bradford & Bingley call my boss to check my salary?
• The mortgage broker has recommended their lawyer for my Transfer of Equity plus remortgage with Bradford & Bingley - Is it not simpler advisable to just use them?
• My existing home loan is with Bradford & Bingley. Can I transfer equity to someone who is not yet 18 years old?
• I got my Decree Absolute four years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Bradford & Bingley is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Bradford & Bingley?

Information that may be required from your lawyer could ask about your Bradford & Bingley Transfer of Equity

General Advice to read in conjunction with the above Bradford & Bingley transfer of equity information :

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 Bradford & Bingley 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 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 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 Bradford & Bingley 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 Bradford & Bingley 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 transaction.

Preparing the Transfer of Equity with a Bradford & Bingley 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 Bradford & Bingley 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 provided 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.