Top seven questions relating to DB UK Bank transfer of equity
- As things stand I have a joint DB UK Bank mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is approx 175k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
- I got divorced in 2012. I simply never dealt with the change the ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. DB UK Bank is happy to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?
- My former wife are looking to get a lawyer lined up for a new mortgage with DB UK Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over UK. Is it important to appoint a conveyancer local to us?
- Do I need legal advice when doing a transfer of equity where the mortgage is to remain with DB UK Bank?
- My partner and I co-own a flat in Blaenavon
. Mortgage is with DB UK Bank. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be straightforward?
- At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is happening at the same time as a refinancing via DB UK Bank?
- I am planning on removing a name from a joint mortgage and the DB UK Bank require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Sedgefield
conveyancer to deal with the transfer of equity? They need to be on the DB UK Bank conveyancing panel.
Sample of information requested in a conveyancing solicitor questionnaire concerning a DB UK Bank Transfer of Equity
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached DB UK Bank to seek consent to the Transfer of Equity
General Advice to read in in addition to the above DB UK Bank transfer of equity Info :
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 DB UK 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 freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 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 DB UK 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 DB UK 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with DB UK Bank your property may be repossessed.
Preparing the Transfer of Equity with a DB UK 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 DB UK 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 provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.
