DB UK Bank transfer of equity: q and a’s
- My fiance and I have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name in order reduce our tax on the letting income. Assuming DB UK Bank are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- I got divorced in 2011. Foolishly I never got around to transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. DB UK Bank is happy to transfer the property and loan in my name (financial checks done). Does she need a lawyer?
- I currently have a joint DB UK Bank mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy a place with my partner. The remaining mortgage is in the region 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
- I am transferring my equity in property in Hendon to my co-owners husband, they are sticking with DB UK Bank as the the existing mortgage company. We are haggling as to who must pay the fees for the transfer of equity. Is this usually shared or is one party liable for the fees for?
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with DB UK Bank?
- My ex-fiance and I are are looking to find a trustworthy conveyancing solicitor to help me sell in a transfer of equity and refinance with DB UK Bank. I really don't want to get ripped off but with many conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
- Online reading suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously switching mortgage with DB UK Bank
Examples of information requested in a conveyancing solicitor form relating to DB UK Bank Transfer of Equity
Has consent been obtained from DB UK Bank to the proposed 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?
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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
Where you are adding a person 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.
Information to consider in in addition to 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 properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 is dependent on the market value 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 conveyancer 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 contained within 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.