Common questions relating to Bradford & Bingley transfer of equity
- My partner and myself equally own a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on the letting income. If Bradford & Bingley are content with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- Bradford & Bingley have today agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?
- I currently have a joint Bradford & Bingley mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
- What is the process for having a person removed from the title documents to a house where the home loan is with Bradford & Bingley
- I am considering mortgaging my house in Wakefield
does my lawyer have to be on the Bradford & Bingley Solicitor panel. The conveyancing also involves a transfer of equity.
- I got divorced in 2011. Foolishly I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Bradford & Bingley is content to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
- Have recently separated from my wife of 18 years. I'm now living with my parents again and she wishes to remain in the apartment and pay me off. What portion do I get. Is it half of the equity after redeeming the mortgage with Bradford & Bingley? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
Information that may be required from your conveyancing solicitor may ask in relation to your Bradford & Bingley Transfer of Equity
Is it the case that one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide a copy of your National Insurance Number?
Please provide the details of anyone to be extracted from the property title?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Has consent been obtained from Bradford & Bingley to the proposed transfer of equity?
Information to consider in further to 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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.