Frequently asked questions relating to Bradford & Bingley transfer of equity

• Will I incur any fees for a Transfer of Equity where the existing home loan is with Bradford & Bingley?
• I am in the process of remortgaging my flat in Dunnington does my lawyer need to be on the Bradford & Bingley Solicitor panel. The conveyancing also involves a transfer of equity.
• As things stand I have a joint Bradford & Bingley mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is approx 300k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Bradford & Bingley?
• My partner and I co-own a house in Blaenavon . Mortgage is with Bradford & Bingley. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
• My Bradford & Bingley home loan is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. Bradford & Bingley will permit the transfer of equity to my individual name. Will Bradford & Bingley get in touch with my employer to confirm my salary?
• I jointly own a property in Heathfield , with a Bradford & Bingley mortgage with my former husband. Him and his fiance are going to acquire my share. We had approval from Bradford & Bingley to remove my name with hers. The transfer of equity has to be done by a lawyer for Bradford & Bingley (supposedly). Is it possible for us to do the Land Registry formalities?

Questions that your conveyancing solicitor may ask about your Bradford & Bingley Transfer of Equity

Information to consider in supplemental 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 titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 conveyancer 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 the conclusion 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 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 conveyancing solicitor 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.