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

  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • Me and a friend got a joint mortgage with Co operative Bank on a property about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any concerns with Co operative Bank with him being on the hook for the total mortgage rather than only part of it?
  • My -ex-husband and I are in the market for a value for money conveyancing lawyer to assist in a transfer of equity and refinance with Co operative Bank. I really don't want to get ripped off but with plenty conveyancing solicitors who do transfer of equity conveyancing to pick from...who's the best?
  • Co operative Bank have just agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
  • Law month I separated from my ex of 18 years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Co operative Bank? I assume proper valuations are required but I really need ensure that I'm getting I am not being walked over
  • My existing home loan is with Co operative Bank. Can I transfer equity to someone under eighteen years old?
  • My Co operative Bank home loan is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. Co operative Bank will permit the transfer of equity to me solely. Will Co operative Bank call my employer to check my salary?

Questions that your lawyer is likely to ask in relation to your Co operative Bank Transfer of Equity

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

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

Please provide the name(s) and addresse(s) of anyone to be added to the property title?

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

Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

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

General Advice to read in supplemental 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 properties

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to 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 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 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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