Common questions relating to M&S Bank transfer of equity

• Last year bought a apartment without my wife's name on the title documents. My conveyancing solicitor advised it is because she was not in the loan offer with M&S Bank. Is it possible for me to put her name on the deeds?
• I currently have a joint M&S Bank mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a property with my partner. The remaining mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• I got divorced three years ago. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. M&S Bank is content to transfer the property and loan in my name (financial checks done). Does my ex need a conveyancer?
• What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with M&S Bank - and have been quoted £250 excluding VAT by M&S Bank's appointed conveyancing solicitor, Have I been over quoted?
• Have recently separated from my ex of thirty years. I'm now back with my parents again and she wishes to stay in the apartment and buy me out. What percentage do I get. 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 ensure that I'm getting the best deal
• My mother died half a year ago leaving a loan-free property to me and my step brother equally. Having continues to reside at the property, there was a condition in the will specifying that the premisescould not be sold for 2 years following her death so he could remain there for a while. He now wants to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to acquire my half from me?

Information that may be required from your lawyer is likely to ask regarding your M&S Bank Transfer of Equity

Caveats to be read in further to the above M&S 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 M&S Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, 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 is dependent 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 conveyancing solicitor 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.

Information contained within 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.