Bradford & Bingley transfer of equity: q and a’s

• I am hoping to remortgage my home in Romsey changing from Yorkshire Building Society to Bradford & Bingley. The home is jointly owned but intend for it to be in my name only as and when I switch. My wife has agreed to this and is happy to transfer equity but neither of us want to incur lawyer fees.
• Me and a friend got a joint mortgage with Bradford & Bingley on a apartment a couple of years ago. I am now thinking of buying a house on my own and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any concerns with Bradford & Bingley with him being on the hook for the total mortgage as opposed to only half of it?
• When it comes to transfer of equity conveyancing involving a remortgage with Bradford & Bingley should I be invoiced value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Bradford & Bingley - and have been quoted Four Hundred pounds excluding VAT by Bradford & Bingley's appointed conveyancer, Have I been over quoted?
• Am I best advised cancel the direct debit for my mortgage with Bradford & Bingley once a date for my remortgage and transfer of equity has been set?
• I am under the impression we would need at least AP1 and TR1. Is this true?
• I am thinking of mortgaging my flat in Littleborough does my lawyer have to be on the Bradford & Bingley Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your conveyancing solicitor is likely to ask about your Bradford & Bingley Transfer of Equity

Information to consider in supporting the above Bradford & Bingley 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 Bradford & Bingley conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions 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 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 conveyancing solicitor 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Bradford & Bingley 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 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.