Recently asked questions relating to M&S Bank transfer of equity
- Have recently separated from my wife of 18 years. I'm now living with my parents again and she wishes to stay 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
- My mother died half a year ago leaving a unencumbered semi to me and my half brother 50:50. He has always lived in the property, there was a condition in her will saying the housecould not be sold for 24 months after her death so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my share?
- I purchased a flat with my cousin five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the M&S Bank mortgage. There is a significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- Is it possible to apply to request a further advance from M&S Bank as part of a Transfer of Equity?
- My current home loan is with M&S Bank. Can I transfer equity to someone under eighteen years old?
- My former husband are looking to get a lawyer in place for a refinance with M&S Bank. Transfer of Equity conveyancing is also necessaryI have used the different comparison based services and the results are from all over UK. Is it important to instruct a conveyancer local to us?
- I am in the process of remortgaging my apartment in Friern Barnet
does my lawyer have to be on the M&S Bank Solicitor panel. The conveyancing also involves a transfer of equity.
Questions that your lawyer could ask regarding your M&S Bank Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please give the details of anyone to be added to the title deeds?
Where you 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?
Caveats to be read in in addition 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 premises
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 lawyer 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 conveyancing.
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 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 conveyancer 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.