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Questions and answers: M&S Bank transfer of equity

  • Law month I split up with my partner of twenty years. I'm now living with my parents again and she wishes to remain in the property and buy me out. What portion am I entitled to. Is it half of the equity after paying off the mortgage with M&S Bank? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
  • I am selling my share of a flat in Warwick to the other co-owners fiance, they are sticking with M&S Bank being the the existing lender. We are in heated discussion as to who must cover the legal bill for the transfer of equity. Is this normally shared or is one party obliged to cover the costs of?
  • M&S Bank yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
  • My decree absolute is through as is the consent order. Now I must sort out the transfer of equity on title deeds and the M&S Bank home loan. I have asked M&S Bank for the transfer of equity application. What do I do now?
  • My brother and I got a joint mortgage with M&S Bank on a house in 2013. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Would there be any potential issue with M&S Bank with him being solely liable for the total loan rather than only half of it?
  • At what stage do I pay stamp duty chargeable for the transfer of equity in my home in my name alone which is happening at the same time as a switching mortgage with M&S Bank?
  • Is it possible to transfer the equity held in my property with my M&S Bank mortgage?

Examples of information requested in a conveyancer form concerning a M&S Bank Transfer of Equity

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

Who will be responsible for the costs of the Transfer of Equity?

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

Please give the details of anyone to be extracted from the title deeds?

Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Caveats to be read in conjunction with the above M&S Bank transfer of equity Info :

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 properties

Should the tenure of your property be 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 restrictions are not strictly observed you may be in violation of the lease. This could trigger 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with M&S Bank.

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 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 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 M&S Bank transfer of equity