Recently asked questions relating to Clydesdale Bank transfer of equity
- My dad passed away half a year ago leaving a mortgage-free bungalow to me and my brother equally. Having continues to reside at the property, there was a condition in her will specifying that the housecould not be sold for three years after her death so he could continue to live there for a while. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
- My ex are seeking to get a conveyancing solicitor in place for a refinance with Clydesdale Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over England and Wales. How necessary is it to have a lawyer local to us?
- I am selling my share of a apartment in Birmingham to the other co-owners fiance, they are reapplying to Clydesdale Bank. We are haggling as to who should pay the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
- I got my Decree Absolute four years ago. I simply never dealt with the transfer ownership from the current 'joint' status to my name alone. 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 my ex need any legal representation?
- I intend to refinance my flat in Rye
switching from Barnsley BS to Clydesdale Bank. The home is jointly owned but wish for it to be in my name only as and when I transfer. My husband is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor charges.
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Clydesdale Bank mortgage account?
- Is it possible to apply to request more money from Clydesdale Bank as part of a Transfer of Equity?
Examples of information requested in a conveyancing solicitor form concerning a Clydesdale Bank Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide the details of anyone to be extracted from the title deeds?
Caveats to be read in conjunction with the above Clydesdale Bank transfer of equity information :
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, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Clydesdale Bank your property may be repossessed.
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 conveyancing solicitor 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.