Sample questions relating to DB UK Bank transfer of equity
- Me and a friend got a joint mortgage with DB UK Bank on a flat a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential problem with DB UK Bank with him being responsible for the total mortgage rather than only half of it?
- I plan to remortgage my apartment in Blaenavon
changing from Barnsley BS to DB UK Bank. The home is jointly owned but propose for it to be in my name only as and when I switch. My former partner is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
- Three years ago I purchased a house without my partner's name on the title. My conveyancing solicitor claimed it is because she was not in the loan offer with DB UK Bank. Is it possible for me to put her name on the title?
- My fiance and myself have equal shares in 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 reduce our tax on the letting income. If DB UK Bank are fine with this the legal fees are not high. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- What can I do where I am unhappy with the conveyancer who handled my transfer of equity transaction?
- I am completing a DB UK Bank transfer of equity application and have arrived at the part regarding debts etc. There are some debts that I have been reducing for a number of years, I understand that they no longer remain my credit records. Am I obliged to set these out?
- My DB UK Bank mortgage we jointly entered into with ex, he is agreeable to come off the deeds and put the house in my name alone. DB UK Bank have consented to the transfer of equity to me solely. Will DB UK Bank contact my boss to verify my salary?
Sample of questions in a lawyer questionnaire relating to DB UK Bank Transfer of Equity
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
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?
Has consent been obtained from DB UK Bank to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Important warnings to consider in further to 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, the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under 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 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 market value 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 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.
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.