Frequently asked questions relating to DB UK Bank transfer of equity
- After 4 years apart I have made the decision to transfer my share of our property to my husband who is refinancing with DB UK Bank. Could this transfer of equity be completed inside one month?
- Law week I split up with my wife of 18 years. I'm now living with my mum and dad and she wishes to remain in the apartment and buy me out. What portion am I entitled to. Is it half of the equity after redeeming the DB UK Bank home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
- Me and a friend got a joint mortgage with DB UK Bank on a flat about a year ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Is there likely to be any concerns with DB UK Bank with him being responsible for the total mortgage rather than only part of it?
- I currently have a joint DB UK Bank mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is approx 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
- How much the typical legal fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with DB UK Bank - and have been quoted Three Hundred pounds plus VAT by DB UK Bank's appointed conveyancing solicitor, Have I been over quoted?
- My existing home loan is with DB UK Bank. Can I transfer equity to someone less than 18 years old?
- My partner and I jointly own a flat in Friern Barnet
. Mortgage is with DB UK Bank. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?
Information that may be required from your lawyer could ask regarding your DB UK Bank Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Is the transfer of equity subject to a court order? If yes please supply a copy
Is there to be any consideration monies passing 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 list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding someone 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” Questionnaire.
Has consent been obtained from DB UK Bank to the proposed transfer of equity?
Information to consider in in addition to the above DB UK Bank transfer of equity Questions and Answers :
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 titles
If your property is leasehold, the lease may have a requirement for notices to be served and 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 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.