Frequently asked questions relating to Danske Bank transfer of equity
- I am under the impression we would need at least AP1 and TR1. Is this true?
- I am are seeking to find an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Danske Bank. I I am fearful of appointing the wrong one but with various conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
- I am thinking of mortgaging my home in Blaenavon
does my lawyer have to be on the Danske Bank Solicitor panel. The conveyancing also involves a transfer of equity.
- I bought a flat with my cousin in 2010 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Danske Bank mortgage. There is a 40k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- My partner and myself equally own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Danske Bank are happy with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
- Have recently separated from my wife of twenty years. I'm now living with my parents again and she wishes to remain in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after redeeming the mortgage with Danske Bank? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
- I got divorced two years ago. For some reason I never dealt with the change the ownership from the current 'joint' status 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 willing to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
Information that may be required from your conveyancer is likely to ask regarding your Danske Bank Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Danske Bank to obtain consent to the Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
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 premises
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 valuation of the property at the conclusion of the transfer of equity conveyancing.
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 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.