Questions and answers: DB UK Bank transfer of equity

• My mother died early last year leaving a loan-free semi to me and my step brother 50:50. Having continues to reside at the premises, there was a condition in the will saying the housecould not be sold for 24 months after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
• Is it possible to apply to request more money from DB UK Bank as part of a Transfer of Equity?
• I am refinancing my house in Witham does my lawyer have to be on the DB UK Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
• I currently have a joint DB UK Bank mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is in the region 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
• I am answering a DB UK Bank transfer of equity application and have come to the questions regarding defaults etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit score. Must I set these out?
• I am am in need of a conveyancing solicitor to handle my transfer of equity. DB UK Bank are dealing with the remortgage. I thought of asking my financial adviser. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
• I own a house in Wakefield , with a DB UK Bank mortgage with my former partner. He and his fiance are going to buy me out. We had approval from DB UK Bank to substitute my name with hers. The transfer of equity has to be done by a conveyancer for DB UK Bank (supposedly). Can we deal with the Land Registry formalities?

Information that may be required from your conveyancing solicitor could ask in relation to your DB UK Bank Transfer of Equity

Information to consider in conjunction with 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 titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 conclusion of the transfer of equity transaction.

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 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.