Top seven questions relating to Danske Bank transfer of equity
- My dad died half a year ago leaving a unencumbered semi to me and my step brother equally. He has always lived in the house, there was a clause in her will saying the premisescould not be sold for 2 years following her passing so he could reside there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
- Can I transfer the equity held in my property with my Danske Bank home loan?
- Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Danske Bank
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Danske Bank mortgage account?
- I am am in need of a conveyancing solicitor to undertake my transfer of equity. Danske Bank are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he may receive a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
- My wife and myself jointly own a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name to mitigate tax on rental income. If Danske Bank are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- I already have a home loan with Danske Bank and am maintaining my current mortgaging but wish to have it in my sole name so my former wife will come off the mortgage. How long do Danske Bank take to deal with the application?
Examples of questions in a conveyancer form concerning a Danske Bank Transfer of Equity
If you are adding someone 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.
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Please give the details of anyone to be removed from the title deeds?
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 Danske Bank to the proposed transfer of equity?
General Advice to read in supplemental the above Danske 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 Danske Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is 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 breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer will check with Danske 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 Danske 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 time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Danske Bank.
Preparing the Transfer of Equity with a Danske 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 Danske 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.
Content on 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.