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Are you in need of a Transfer of Equity with a Co operative Bank plc mortgage? Failing to check that a lawyer is on the Co operative Bank plc list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Frequently asked questions relating to Co operative Bank transfer of equity

  • I am am in need of a conveyancer to handle my transfer of equity. Co operative Bank have been approached for a remortgage. I thought of asking my financial adviser. I understand he will likely receive a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic flawed?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Co operative Bank?
  • Is it possible to transfer the equity held in my property with my Co operative Bank home loan?
  • Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Co operative Bank?
  • Co operative Bank have just agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
  • I am answering a Co operative Bank transfer of equity application and have come to the section regarding defaults etc. I do some debts that I have been paying off since 2009, I understand that they no longer remain my credit rating. Do I need to disclose these?
  • I am planning on removing a name from a joint mortgage and the Co operative Bank need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Rye conveyancer to deal with the transfer of equity? They need to be on the Co operative Bank conveyancing panel.

Information that may be required from your conveyancing solicitor may ask regarding your Co operative Bank Transfer of Equity

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

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

General Advice to read in conjunction with the above Co operative Bank transfer of equity Questions and Answers :

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 titles

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions 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 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 is dependent on the market value of the property at the conclusion 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 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 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