Sample questions relating to DB UK Bank transfer of equity
- I am disposing of my equity in apartment in Warwick to my co-owners husband, they are reapplying to DB UK Bank. We are in heated discussion as to who must pay the charges for the transfer of equity. Is this normally split or is one of us liable for the charges for?
- I am planning on removing a name from a joint mortgage and the DB UK Bank need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Romsey
conveyancer to deal with the transfer of equity? They need to be on the DB UK Bank conveyancing panel.
- My mother died early last year leaving a unencumbered property to me and my brother in equal shared. Having continues to reside at the house, there was a clause in the will saying the housecould not be sold for 24 months after her death so he could remain there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my half from me?
- How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with DB UK Bank - and have been quoted £350 excluding VAT by DB UK Bank's appointed conveyancer, Have I been over quoted?
- My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity at the HMLR and the DB UK Bank home loan. I have called DB UK Bank for the transfer of equity forms. What are my next steps?
- Is it possible to transfer the equity held in my property with my DB UK Bank home loan?
- How and when do I incur stamp duty due for the transfer of equity in my house in my sole name which is taking place simultaneously with a switching mortgage with DB UK Bank?
Information that may be required from your conveyancer is likely to ask about your DB UK Bank Transfer of Equity
Please provide a copy of your National Insurance Number?
Please give the details of anyone to be extracted from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Has consent been obtained from DB UK Bank to the proposed transfer of equity?
Caveats to be read in further to 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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of 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 conveyancing solicitor 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.
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 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 conveyancer 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 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.