LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Co operative Bank

Co operative Bank transfer of equity: q and a’s

  • How and when do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage via Co operative Bank?
  • I acquired a flat with my cousin in 2009 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 meaningful difference between the value the Co operative Bank say and what the property would sell for currently. Can you offer any advice?
  • Can I transfer the equity held in my property with my Co operative Bank mortgage?
  • I am am in need of a conveyancer to handle my transfer of equity. Co operative Bank have been approached for a remortgage. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic misguided?
  • I am considering mortgaging my property in Witham does my lawyer need to be on the Co operative Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Me and my partner co-own a flat in Crabtree . Home loan is with Co operative Bank. I want to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be straightforward?
  • What if my application doesn't meet Co operative Bank lending criteria for a transfer of equity?

Examples of questions in a conveyancer form relating to Co operative Bank Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

If you are adding someone on to the property 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 added to the title deeds?

Has consent been obtained from Co operative Bank to the proposed transfer of equity?

Caveats to be read in supporting the above Co operative 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 Co operative Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 conveyancer 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Co operative Bank your property may be repossessed.

Preparing the Transfer of Equity with a Co operative 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 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 conveyancer 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