Top seven questions relating to DB UK Bank transfer of equity
- My partner and myself jointly own a investment property. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name in order reduce our tax on the letting income. If DB UK Bank are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- I bought a property with my brother six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the DB UK Bank mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Law month I split up with my wife of 18 years. I'm now back with my mum and dad and she wishes to stay in the apartment and buy me out. What portion am I entitled to. Is it half of the equity after discharging the DB UK Bank home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- I plan to refinance my maisonette in Wakefield
changing from Virgin Money to DB UK Bank. The flat is currently in joint names but propose for it to be in my name only once I switch. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor charges.
- What is the process for having someone removed off the deeds to a property if the home loan is with DB UK Bank
- I already have a mortgage with DB UK Bank and am keeping my existing mortgaging but seeking to have have the equity transferred to my name only so my ex will come off the mortgage. How long can it take for the paperwork to be processed?
- As things stand I have a joint DB UK Bank mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
Sample of information requested in a conveyancer form concerning a DB UK Bank Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums
Please give the details of anyone to be added to the property title?
Please give the details of anyone to be removed from the title deeds?
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Have you approached DB UK Bank to obtain consent to the Transfer of Equity
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Information to consider in supplemental the above DB UK 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 DB UK 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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in 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 lawyer 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with DB UK Bank.
Preparing the Transfer of Equity with a DB UK 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 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.
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.