Examples of recent questions relating to Bradford & Bingley transfer of equity
- Have recently separated from my ex of twenty years. I'm now back with my parents again and she wants to stay in the property and pay me off. What percentage do I get. Is it 50% of the equity after discharging the mortgage with Bradford & Bingley? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
- Me and a friend got a joint mortgage with Bradford & Bingley on a house in 2013. I am now looking to get a property by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential concerns with Bradford & Bingley with him being responsible for the total mortgage as opposed to only part of it?
- My partner and I equally own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming Bradford & Bingley are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- I am led to believe we would need at least AP1 and TR1. Is this true?
- I already have a mortgage with Bradford & Bingley and am retaining my existing mortgaging but seeking to have it in my name alone so my ex won't be on it any longer. How long can it take for the application to be processed?
- I got divorced in 2011. Foolishly I never got around to transfer ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Bradford & Bingley is happy to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- I purchased a property with a friend six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Bradford & Bingley mortgage. There is a significant difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a lawyer form relating to Bradford & Bingley Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the details of anyone to be extracted from the property title?
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 provide a copy of your National Insurance Number?
Information to consider in supporting the above Bradford & Bingley transfer of equity information :
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 premises
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. 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.
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 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Bradford & Bingley your property may be repossessed.
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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.