M&S Bank transfer of equity example support desk enquires

• I currently have a joint M&S Bank mortgage with my cousin and am looking into the possibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is approx 200k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty payable?
• My M&S Bank home loan is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. M&S Bank have consented to the transfer of equity to me solely. Do M&S Bank contact my company to check my salary?
• I jointly own a flat in Heathfield , with a M&S Bank loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from M&S Bank to replace my name with hers. The transfer of equity needs to be done by a conveyancer for M&S Bank (apparently). Is it possible for us to deal with the Land Registry formalities?
• I plan to refinance my home in Timperley moving from Barnsley BS to M&S Bank. The maisonette is currently in joint names but propose for it to be in my sole name as and when I transfer. My wife is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• The mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with M&S Bank - Is it not simpler advisable to just use them?
• What are the average solicitors costs are for a transfer of equity? I'm in the process of remortgaging - new loan with M&S Bank - and have been quoted £350 plus VAT by M&S Bank's approved conveyancing solicitor, Is this a reasonable price?
• I got my Decree Absolute four years ago. Foolishly I never dealt with the transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. M&S Bank is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?

Examples of information requested in a conveyancing solicitor form relating to M&S Bank Transfer of Equity

Information to consider in further to the above M&S 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 M&S Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 conveyancing solicitor will check with M&S 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 M&S 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.

Preparing the Transfer of Equity with a M&S 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 M&S 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.