Common questions relating to Co operative Bank transfer of equity

• My friend and I got a joint mortgage with Co operative Bank on a property about a year ago. I am now looking to get a property on my own and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Would there be any potential issue with Co operative Bank with him being on the hook for the total loan as opposed to only part of it?
• I purchased a flat with my brother in 2009 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Co operative Bank mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Co operative Bank?
• I am filling out a Co operative Bank transfer of equity application and have come to the section concerning defaults etc. I do some debts that I have been discharging since 2008, in fact they have long since disappeared from my credit records. Do I need to set these out?
• My Co operative Bank mortgage is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Co operative Bank will permit the transfer of equity to me solely. Do Co operative Bank contact my boss to verify my salary?
• My partner and I jointly own a house in Witham . Home loan is with Co operative Bank. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be straightforward?
• Can you tell me how to have a person removed off the title documents to a property where the home loan is with Co operative Bank

Questions that your conveyancing solicitor could ask in relation to your Co operative Bank Transfer of Equity

Caveats to be read in in addition to the above Co operative Bank transfer of equity Advice :

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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with 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 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 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 market value of the property at finalisation 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 conveyancer 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.