Examples of recent questions relating to M&S Bank transfer of equity
- My mother passed away early last year leaving a loan-free semi to me and my brother equally. He has always lived in the house, there was a clause in the will saying the premisescould not be sold for 2 years following her passing so he could reside there for a specified time frame. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to buy my half from me?
- Last year bought a property without my fiance’s name on the title. My conveyancing solicitor claimed it is because she was not in the mortgage with M&S Bank. Is it possible for me to put her name on the documents at HM Land Registry?
- Is it possible to apply to borrow a further advance from M&S Bank as part of a Transfer of Equity?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with M&S Bank?
- I currently have a joint M&S Bank mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is about 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with M&S Bank?
- My brother and I got a joint mortgage with M&S Bank on a apartment about a year ago. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Would there be any potential problem with M&S Bank with him being solely liable for the total mortgage as opposed to only half of it?
Examples of questions in a conveyancer form relating to M&S Bank Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please provide a copy of your National Insurance Number?
If you are adding a person 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” Form.
Please let us know if you are making any payment for the Transfer of Equity and to whom and notify us the amount?
Have you approached M&S Bank to seek consent to the Transfer of Equity
General Advice to read in in addition to the above M&S Bank transfer of equity Questions and Answers :
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, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 varies based on the market value of the property at finalisation 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 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 does not constitute 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.