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Clydesdale Bank

Common questions relating to Clydesdale Bank transfer of equity

  • My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Clydesdale Bank home loan. I have contacted Clydesdale Bank for the transfer of equity application. What do I do now?
  • What if my application doesn't meet Clydesdale Bank lending criteria for a transfer of equity?
  • I am disposing of my equity in apartment in Warwick to the other co-owners husband, they are reapplying to Clydesdale Bank. We are in heated discussion as to who should cover the legal bill for the transfer of equity. Should this be shared or is one of us liable for the charges for?
  • I am completing a Clydesdale Bank transfer of equity application and have arrived at the questions regarding debts etc. I do some debts that I have been discharging over a long period, in fact they no longer remain my credit rating. Must I set these out?
  • What is the process for having a person removed from the deeds to a property where the home loan is with Clydesdale Bank
  • My father passed away half a year ago leaving a unencumbered bungalow to me and my half brother 50:50. Having continues to reside at the premises, there was a clause in her will specifying that the premisescould not be sold for 24 months after her death so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Clydesdale Bank?

Questions that your lawyer could ask regarding your Clydesdale Bank Transfer of Equity

Please give the details of anyone to be added to the property title?

Who will be responsible for the costs of the Transfer of Equity?

Has consent been obtained from Clydesdale Bank to the proposed transfer of equity?

Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose the amount?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Please list all persons who occupy the property, their respective ages and relationships to you.

Important warnings to consider in supporting the above Clydesdale Bank transfer of equity Info :

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, provisions in the lease may require 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.

Indemnity Insurance

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 conveyancer 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 finalisation of the transfer of equity conveyancing.
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 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 lawyer 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