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Bradford & Bingley

Frequently asked questions relating to Bradford & Bingley transfer of equity

  • Can I apply to request a further advance from Bradford & Bingley as part of a Transfer of Equity?
  • My partner and I have equal shares in a BTL. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Bradford & Bingley are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • When it comes to transfer of equity conveyancing involving a remortgage with Bradford & Bingley should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • I am planning on removing a name from a joint mortgage and the Bradford & Bingley need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Dunnington lawyer to deal with the transfer of equity? They need to be on the Bradford & Bingley conveyancing panel.
  • What if my application doesn't meet Bradford & Bingley lending criteria for a transfer of equity?
  • I am completing a Bradford & Bingley transfer of equity application and have come to the part that asks about debts etc. There are some debts that I have been clearing over a long period, I understand that they no longer remain my credit score. Do I need to set these out?
  • As things stand I have a joint Bradford & Bingley mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?

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

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please confirm if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

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

General Advice to read in conjunction with the above Bradford & Bingley 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 Bradford & Bingley conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 valuation of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bradford & Bingley.

Preparing the Transfer of Equity with a Bradford & Bingley Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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 Bradford & Bingley transfer of equity