Top seven questions relating to Danske Bank transfer of equity
- My decree absolute is through as is the consent order. Now I need to address the transfer of equity at the land registry and the Danske Bank mortgage. I have called Danske Bank for the transfer of equity forms. What do I do now?
- I am am in need of a lawyer to undertake my transfer of equity. Danske Bank have been approached for a refinancing. I considered asking my mortgage broker. I understand he may get 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?
- I plan to refinance my apartment in Winchelsea
changing from Bank of Scotland to Danske Bank. The home is currently in joint names but wish for it to be in my sole name once I transfer. My wife is OK with this and is willing to sign a form but neither of us want to incur lawyer charges.
- I am planning on removing a name from a joint mortgage and the Danske Bank require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting
lawyer to deal with the transfer of equity? They need to be on the Danske Bank conveyancing panel.
- I bought a property with my cousin in 2009 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Danske Bank mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- When it comes to transfer of equity conveyancing involving refinance with Danske Bank should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
Questions that your lawyer could ask about your Danske Bank Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in in addition to the above Danske Bank transfer of equity Advice :
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, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 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 lawyer 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Danske Bank your property may be repossessed.
Preparing the Transfer of Equity with a Danske 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 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.
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.
