Questions and answers: DB UK Bank transfer of equity
- My wife and myself have equal shares in a buy to let. I am a top rate tax payer. Preferably I wish 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 inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with DB UK Bank?
- I acquired a house with my brother in 2008 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the DB UK Bank mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I am trying to find a conveyancer to undertake my transfer of equity. DB UK Bank are dealing with the remortgage. I thought of asking my mortgage broker. I understand he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
- My partner and I co-own a property in Dunnington
. Mortgage is with DB UK Bank. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be easy to so?
- How and when do I cover the costs of stamp duty payable for the transfer of equity in my property in my sole name which is taking place at the same time as a refinancing with DB UK Bank?
- My former husband are looking to get a lawyer in place for a refinance with DB UK Bank. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over UK. Is it important to instruct a conveyancing solicitor local to us?
Sample of questions in a lawyer form relating to DB UK Bank Transfer of Equity
Have you approached DB UK Bank to seek consent to the Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be added to the title deeds?
If 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?
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Information to consider in supporting the above DB UK Bank transfer of equity Advice :
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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of 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 situations, 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 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 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 lawyer 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.