Questions and answers: Clydesdale Bank transfer of equity

• Is it possible to apply to request more money from Clydesdale Bank as part of a Transfer of Equity?
• Am I best advised stop my mortgage payments with Clydesdale Bank as soon as a date for my remortgage and transfer of equity has been set?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with Clydesdale Bank?
• I am planning on removing a name from a joint mortgage and the Clydesdale Bank require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Timperley lawyer to deal with the transfer of equity? They need to be on the Clydesdale Bank conveyancing panel.
• I am answering a Clydesdale Bank transfer of equity application and have arrived at the part that asks about debts etc. I do some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
• I co-own a flat in Crabtree , with a Clydesdale Bank mortgage with my ex husband. He and his fiance are going to acquire my share. We had consent from Clydesdale Bank to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Clydesdale Bank (apparently). Can we do the Land Registry formalities?
• My current mortgage is with Clydesdale Bank. Can I transfer equity to someone under 18 years old?

Sample of information requested in a conveyancer form relating to Clydesdale Bank Transfer of Equity

Caveats to be read in in addition to the above Clydesdale Bank transfer of equity Questions and Answers :

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 properties

If your property is 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 the lease. This could trigger 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Clydesdale Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 conveyancing solicitor 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.