Examples of recent questions relating to Co operative Bank transfer of equity
- My former husband are seeking to get a conveyancer lined up for a remortgage with Co operative Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. Do we need to have a conveyancing solicitor local to us?
- What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Co operative Bank - and have been quoted £250 including VAT by Co operative Bank's approved lawyer, Have I been over quoted?
- My partner and I equally own a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name to mitigate tax on rental income. Assuming Co operative Bank are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- My mum died early last year leaving a unencumbered bungalow to me and my half brother 50:50. Having continues to reside at the premises, there was a provision in the will specifying that the propertycould not be sold for 2 years following her death so he could continue to live there for a while. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to buy my equity?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Co operative Bank?
- Have recently split up with my partner of thirty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the Co operative Bank home loan? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being taken advantage of
- At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a refinancing with Co operative Bank?
Sample of information requested in a conveyancing solicitor questionnaire relating to Co operative Bank Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Have you approached Co operative Bank to obtain consent to the Transfer of Equity
Please provide a copy of your National Insurance Number?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the details of anyone to be extracted from the property title?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in in addition to the above Co operative Bank transfer of equity Info :
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 Co operative 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 freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 lawyer 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
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 conveyancer 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.
