Clydesdale Bank transfer of equity example support desk enquires

• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Clydesdale Bank?
• I am answering a Clydesdale Bank transfer of equity request and have come to the questions regarding defaults etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit rating. Am I obliged to reveal these?
• I am remortgaging my flat in Sedgefield does my lawyer have to be on the Clydesdale Bank Solicitor panel. The conveyancing also involves a transfer of equity.
• My mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Clydesdale Bank - won’t it be advisable to just instruct them?
• Me and a friend got a joint mortgage with Clydesdale Bank on a apartment about a year ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Would there be any potential concerns with Clydesdale Bank with him being responsible for the total loan rather than only half of it?
• Can I transfer the equity held in my property with my Clydesdale Bank mortgage?
• My dad died early last year leaving a unencumbered house to me and my step brother in equal shared. Having continues to reside at the premises, there was a clause in the will saying the housecould not be sold for three years after her death so he could continue to live there for a while. He now wishes to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to buy my half from me?

Examples of questions in a lawyer form concerning a Clydesdale Bank Transfer of Equity

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

Tax and Legal

There may be various 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 premises

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 terms are not adhered to you may be in breach 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 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 conveyancing solicitor 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 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 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.