Questions and answers: Clydesdale Bank transfer of equity

• My former husband are planning to get a conveyancer lined up for a refinance with Clydesdale Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. Do we need to have a conveyancer local to us?
• Am I best advised cancel my mortgage payments with Clydesdale Bank once a date for my remortgage and transfer of equity has been agreed?
• I am considering refinancing my house in Crabtree does my lawyer have to be on the Clydesdale Bank Solicitor panel. The conveyancing also involves a transfer of equity.
• I got divorced in 2010. Foolishly I never dealt with the change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Clydesdale Bank is content to transfer the full equity in my name (financial checks done). Does she need a solicitor?
• How do I go about adding or removing names (transfer of equity) to or from my Clydesdale Bank mortgage account?
• My decree absolute is through as is the consent order. Now I have to address the transfer of equity on title deeds and the Clydesdale Bank home loan. I have asked Clydesdale Bank for the transfer of equity forms. What are my next steps?
• Last year bought a house without my wife's name on the title documents. My conveyancing solicitor advised it is because she was not in the loan offer with Clydesdale Bank. I'm wondering is there any way that I can put her name on the title?

Examples of information requested in a conveyancing solicitor questionnaire relating to Clydesdale Bank Transfer of Equity

General Advice to read in supporting 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 titles

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation 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 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 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 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 contained within 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.