Sample questions relating to Clydesdale Bank transfer of equity

• Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Clydesdale Bank?
• Have recently split up with my ex of thirty years. I'm now back with my mum and dad and she wishes to stay in the property and buy me out. What percentage am I entitled to. Is it half of the equity after redeeming the Clydesdale Bank home loan? I assume proper valuations are required but I would like to be sure that I'm getting I am not being taken advantage of
• Our financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with Clydesdale Bank - Surely it’s better to just instruct them?
• My wife and I have equal shares in a BTL. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on the letting income. If Clydesdale Bank are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
• I am completing a Clydesdale Bank transfer of equity form and have arrived at the section concerning defaults etc. There are some debts that I have been paying off over a long period, in fact they no longer remain my credit records. Do I need to set these out?
• What is the process for having someone removed from the deeds to a property where the mortgage is with Clydesdale Bank
• My current home loan is with Clydesdale Bank. Can I transfer equity to someone who is not yet eighteen years old?

Examples of questions in a lawyer form relating to Clydesdale Bank Transfer of Equity

Caveats to be read in supplemental the above Clydesdale Bank transfer of equity Advice :

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 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Clydesdale Bank 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 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.

Content on 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.