Questions and answers: Clydesdale Bank transfer of equity

• I got my Decree Absolute four years ago. I simply never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Clydesdale Bank is willing to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• Can you tell me how to have a person removed off the title documents to a property where the mortgage is with Clydesdale Bank
• Is it sensible to stop my mortgage payments with Clydesdale Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• My ex-partner and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Clydesdale Bank. I am aware of the dangers of getting ripped off and there are so many conveyancing practices who do transfer of equity conveyancing out there...who's the best?
• My wife and myself equally own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order mitigate tax on rental income. If Clydesdale Bank are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• My decree absolute is through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Clydesdale Bank mortgage. I have called Clydesdale Bank for the transfer of equity application. What do I do now?

Questions that your conveyancer could ask in relation to your Clydesdale Bank Transfer of Equity

Important warnings to consider in supplemental 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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation 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 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 valuation of the property at the conclusion 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 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 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 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.