Recently asked questions relating to DB UK Bank transfer of equity
- My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity for the property and the DB UK Bank mortgage. I have contacted DB UK Bank for the transfer of equity application. What are my next steps?
- My partner and myself have equal shares in a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on rental income. If DB UK Bank are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
- I am filling out a DB UK Bank transfer of equity request and have come to the part regarding defaults etc. There are some debts that I have been reducing since 2008, I understand that they no longer remain my credit score. Do I need to set these out?
- My DB UK Bank home loan is in joint names with ex, who is agreeable to be removed and let me have the property. DB UK Bank will permit the transfer of equity to me solely. Do DB UK Bank get in touch with my boss to check my salary?
- As things stand I have a joint DB UK Bank mortgage with my step-brother and am investigating the option of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- I already have a home loan with DB UK Bank and am retaining my current mortgaging but seeking to have it in my name only so my ex won't be on it any longer. How long can it take for the paperwork to be processed?
- I intend to refinance my home in Littleborough
switching from Barclays to DB UK Bank. The flat is jointly owned but I would like it to be in my sole name when I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
Questions that your lawyer is likely to ask regarding your DB UK Bank Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Where you are intent on holding 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 list all persons who occupy the property, their respective ages and relationships to you.
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
Please provide the details of anyone to be added to the title deeds?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in in addition to the above DB UK Bank transfer of equity Questions and Answers :
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 properties
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 lawyer 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 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.