Frequently asked questions relating to Danske Bank transfer of equity

• I currently have a joint Danske Bank mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is approx 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
• I already have a home loan with Danske Bank and am retaining my current mortgaging but applying to have have the equity transferred to my name only so my ex won't be on it any longer. How long do Danske Bank take to deal with the application?
• Can I apply to request a further advance from Danske Bank as part of a Transfer of Equity?
• Our financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Danske Bank - won’t it be better to just use them?
• How and when do I pay stamp duty payable for the transfer of equity in my home in my sole name which is happening at the same time as a refinancing via Danske Bank?
• I got my Decree Absolute in 2010. Foolishly I never dealt with the change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Danske Bank is happy to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
• I am looking for a conveyancing solicitor to undertake my transfer of equity. Danske Bank are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic flawed?

Questions that your conveyancing solicitor is likely to ask regarding your Danske Bank Transfer of Equity

Information to consider in further to the above Danske Bank transfer of equity Info :

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 titles

If your property is leasehold, provisions in 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 violation of the lease. This could potentially result in 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 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Danske 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 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 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.