Questions and answers: M&S Bank transfer of equity

• I got divorced three years ago. I simply never dealt with the transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. M&S Bank is willing to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
• Me and my partner jointly own a flat in Wakefield . Mortgage is with M&S Bank. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be easy to so?
• When it comes to transfer of equity conveyancing involving a remortgage with M&S Bank should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Last year purchased a apartment without my fiance’s name on the ownership paperwork. My lawyer advised it is because she was not in the mortgage with M&S Bank. Is it possible for me to put her name on the deeds?
• My decree absolute is through as is the consent order. Now I have to sort out the transfer of equity for the property and the M&S Bank home loan. I have called M&S Bank for the transfer of equity forms. What happens next?
• I am planning on removing a name from a joint mortgage and the M&S Bank require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Blaenavon conveyancer to deal with the transfer of equity? They need to be on the M&S Bank conveyancing panel.
• My friend and I got a joint mortgage with M&S Bank on a apartment a couple of years ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Is there likely to be any problem with M&S Bank with him being solely liable for the total mortgage rather than only half of it?

Examples of information requested in a conveyancing solicitor questionnaire concerning a M&S Bank Transfer of Equity

Information to consider in supporting the above M&S Bank transfer of equity Advice :

Tax and Legal

There may be various 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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 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 market value of the property at the conclusion 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 lawyer 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.

Information provided 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.