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Clydesdale Bank

Examples of recent questions relating to Clydesdale Bank transfer of equity

  • I currently have a joint Clydesdale Bank mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 175k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?
  • My brother and I got a joint mortgage with Clydesdale Bank on a apartment a couple of years ago. I am now looking to get a house by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential problem with Clydesdale Bank with him being solely liable for the total mortgage as opposed to only part of it?
  • What if my application doesn't meet Clydesdale Bank lending criteria for a transfer of equity?
  • What can I do where I am dissatisfied with the conveyancing solicitor who did my transfer of equity conveyancing?
  • At what stage do I cover the costs of stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage with Clydesdale Bank?
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Clydesdale Bank?
  • My dad passed away half a year ago leaving a unencumbered house to me and my step brother 50:50. He has always lived in the property, there was a provision in the will saying the propertycould not be sold for 24 months after her death so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to acquire my equity?

Questions that your lawyer may ask in relation to your Clydesdale Bank Transfer of Equity

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

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

Please confirm if you are making any payment for the Transfer of Equity and to whom and disclose any such sums?

Please give the name(s) and addresse(s) of those who jointly own the property with you?

Caveats to be read in conjunction with the above Clydesdale Bank transfer of equity Info :

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 titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 varies based on the market value of the property at the conclusion 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 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 provided 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.


Frequently asked questions relating to Clydesdale Bank transfer of equity