Recently asked questions relating to Clydesdale Bank transfer of equity

• My Clydesdale Bank mortgage we jointly entered into with ex, who has agreed to be removed and let me have the property. Clydesdale Bank have consented to the transfer of equity to me solely. Will Clydesdale Bank contact my company to confirm my salary?
• My wife and myself jointly own a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Clydesdale Bank are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• Can I transfer the equity held in my property with my Clydesdale Bank mortgage?
• Me and a friend got a joint mortgage with Clydesdale Bank on a house about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential concerns with Clydesdale Bank with him being responsible for the total loan as opposed to only half of it?
• I am considering refinancing my home in Witham does my lawyer have to be on the Clydesdale Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
• My mum died early last year leaving a mortgage-free bungalow to me and my brother equally. Having continues to reside at the premises, there was a clause in her will saying the housecould not be sold for 24 months after her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to acquire my equity?
• What can I do where I am unhappy with the conveyancer who undertook our transfer of equity conveyancing?

Sample of questions in a conveyancing solicitor form relating to Clydesdale Bank Transfer of Equity

Important warnings to consider 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 properties

If your property is leasehold, 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 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 valuation of the property at finalisation 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 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.

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.