Top seven questions relating to DB UK Bank transfer of equity

• Is it possible to transfer the equity held in my property with my DB UK Bank home loan?
• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the DB UK Bank mortgage. I have contacted DB UK Bank for the transfer of equity application. What do I do now?
• I acquired a flat with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the DB UK Bank mortgage. There is a meaningful difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
• I intend to refinance my maisonette in Dunnington moving from Nationwide to DB UK Bank. The maisonette is jointly owned but propose for it to be in my sole name when I remortgage. My wife has agreed to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
• DB UK Bank yesterday agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
• How and when do I cover the costs of stamp duty due for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via DB UK Bank?
• I am completing a DB UK Bank transfer of equity request and have come to the section concerning debts etc. There are some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit rating. Must I set these out?

Examples of information requested in a conveyancer form relating to DB UK Bank Transfer of Equity

Important warnings to consider in conjunction with the above DB UK Bank transfer of equity Advice :

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 premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger 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 conveyancer 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.

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 conveyancer 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.