Sample questions relating to Clydesdale Bank transfer of equity
- My former husband are planning to get a conveyancer in place for a remortgage with Clydesdale Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over England and Wales. Is it important to instruct a conveyancing solicitor local to us?
- How much the typical solicitors charges are for a transfer of equity? I need to transfer equity and refinance - moving over to Clydesdale Bank - and have been quoted £350 excluding VAT by Clydesdale Bank's approved lawyer, Is this a reasonable price?
- I am transferring my equity in apartment in Birmingham to the other co-owners fiance, they are reapplying to Clydesdale Bank. We are debating as to who must pay the fees for the transfer of equity. Is this normally split or is one of us obliged to cover the fees for?
- Is it possible to transfer the equity held in my property with my Clydesdale Bank home loan?
- I currently have a joint Clydesdale Bank mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
- I am in the process of remortgaging my apartment in Witham
does my lawyer need to be on the Clydesdale Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
- My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Clydesdale Bank - Surely it’s advisable to just use them?
Examples of questions in a lawyer form relating to Clydesdale Bank Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please let us know if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
General Advice to read in supporting the above Clydesdale Bank 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 Clydesdale Bank 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 have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 Clydesdale Bank 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 Clydesdale Bank 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 transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Clydesdale Bank.
Preparing the Transfer of Equity with a Clydesdale Bank 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 Clydesdale Bank 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.
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.
