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DB UK Bank

Questions and answers: DB UK Bank transfer of equity

  • Is it sensible to stop my mortgage payments with DB UK Bank once a date for my remortgage and transfer of equity has been agreed?
  • I am filling out a DB UK Bank transfer of equity form and have arrived at the part that asks about debts etc. There are some debts that I have been clearing over a long period, I understand that they have long since disappeared from my credit score. Do I need to set these out?
  • Having been a number of years apart I have decided to relinquish up my share of the apartment to my husband who is refinancing with DB UK Bank. Could this transfer of equity be done within four weeks?
  • How do I go about adding or subtracting names (transfer of equity) to or from my DB UK Bank mortgage account?
  • I currently have a joint DB UK Bank mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
  • My DB UK Bank home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. DB UK Bank have consented to the transfer of equity to me solely. Do DB UK Bank write my company to verify my salary?
  • My mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with DB UK Bank - won’t it be better to just use them?

Questions that your conveyancer could ask about your DB UK Bank Transfer of Equity

Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please provide a copy of your National Insurance Number?

Would you like us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

If 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?

Is the transfer of equity subject to a court order? If yes please supply a copy

Important warnings to consider 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 premises

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 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 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 finalisation of the transfer of equity transaction.
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.

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.


Frequently asked questions relating to DB UK Bank transfer of equity