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Co operative Bank

Sample questions relating to Co operative Bank transfer of equity

  • I am in the process of removing a name from a joint mortgage and the Co operative Bank need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the Co operative Bank conveyancing panel.
  • I purchased a house with my cousin five.seven years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Co operative Bank mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • Our financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with Co operative Bank - won’t it be better to just instruct them?
  • I am hoping to refinance my home in Wakefield changing from Nationwide to Co operative Bank. The home is jointly owned but propose for it to be in my name only when I switch. My wife has agreed to this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • When it comes to transfer of equity conveyancing involving refinance with Co operative Bank should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • I currently have a joint Co operative Bank mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax involved?
  • My dad passed away seven months ago leaving a unencumbered semi to me and my step brother 50:50. Having continues to reside at the property, there was a provision in the will saying the housecould not be sold for 2 years following her death so he could remain there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have considered 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 buy my share?

Examples of questions in a lawyer questionnaire concerning a Co operative Bank Transfer of Equity

Please provide a copy of your National Insurance Number?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Who will be responsible for the costs of the Transfer of Equity?

Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?

Would you like us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Caveats to be read in conjunction with the above Co operative 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 Co operative 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 landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 conveyancing solicitor will check with Co operative 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 Co operative 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Co operative Bank.

Preparing the Transfer of Equity with a Co operative 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 Co operative 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 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.


Frequently asked questions relating to Co operative Bank transfer of equity