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Clydesdale Bank

Sample questions relating to Clydesdale Bank transfer of equity

  • I understand we would need at least AP1 and TR1. Is this true?
  • Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with Clydesdale Bank?
  • My friend and I got a joint mortgage with Clydesdale Bank on a apartment about a year ago. I am now thinking of buying a property by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any concerns with Clydesdale Bank with him being responsible for the total mortgage as opposed to only half of it?
  • As things stand I have a joint Clydesdale Bank mortgage with my brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a place with my fiance. The remaining mortgage is about 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
  • Law week I split up with my wife of thirty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the Clydesdale Bank home loan? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being walked over
  • I got divorced in 2011. I simply never got around to transfer 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. Clydesdale Bank is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
  • After 2 a couple of years apart I have decided to relinquish up my share of our flat to my husband who is re-mortgaging with Clydesdale Bank. Can a transfer of equity be completed in one month?

Sample of information requested in a conveyancing solicitor questionnaire concerning a Clydesdale Bank Transfer of Equity

Have you approached Clydesdale Bank to seek consent to the Transfer of Equity

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

Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?

Please give the details of anyone to be extracted from the property title?

Information to consider in supplemental the above Clydesdale Bank 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 Clydesdale Bank 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 require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Clydesdale Bank your property may be repossessed.

Preparing the Transfer of Equity with a Clydesdale Bank 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 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 conveyancing solicitor 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 should not be regarded as 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 Clydesdale Bank transfer of equity