Recently asked 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 conveyancer to carry out the legalities. Can you recommend a reasonably priced Wakefield lawyer to deal with the transfer of equity? They need to be on the Co operative Bank conveyancing panel.
• Me and a friend got a joint mortgage with Co operative Bank on a house in 2013. I am now looking to get a house by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any concerns with Co operative Bank with him being responsible for the total mortgage as opposed to only part of it?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Co operative Bank?
• My current home loan is with Co operative Bank. Can I transfer equity to someone under eighteen years old?
• I am in the market for a value for money conveyancing lawyer to help me sell in a transfer of equity and remortgage with Co operative Bank. I really don't want to get ripped off and there are lots of conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
• What do I do if I am not happy with the conveyancing solicitor who did my transfer of equity conveyancing?
• I am filling out a Co operative Bank transfer of equity form and have arrived at the section regarding debts etc. I do some debts that I have been reducing for a number of years, in fact they no longer remain my credit records. Must I set these out?

Information that may be required from your conveyancer may ask in relation to your Co operative Bank Transfer of Equity

Important warnings to consider 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, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation 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 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 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 conveyancing.

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.

Information contained within 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.