Frequently asked questions relating to Metro Bank transfer of equity
- Having been 5 years separated I have opted to relinquish up my interest in the property to my husband who is re-mortgaging with Metro Bank. Could this transfer of equity be completed inside four weeks?
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Metro Bank?
- I am looking for a lawyer to handle my transfer of equity. Metro Bank are dealing with the remortgage. I considered asking my mortgage broker. I am lead to believe he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- I got my Decree Absolute in 2010. I simply never got around to change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Metro Bank is willing to transfer the property and loan in my name (affordability checks done). Does my ex need any legal representation?
- What should I be budgeting for when it comes to what solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Metro Bank - and have been quoted £250 including VAT by Metro Bank's approved conveyancer, Is this a reasonable price?
- I recently purchased a property without my wife's name on the ownership paperwork. My conveyancer claimed it is due to the fact that she was not in the mortgage with Metro Bank. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
- My ex-partner and I are in the market for a value for money conveyancing solicitor to help me sell in a transfer of equity and refinance with Metro Bank. I I am concerned about by bill escalating out of control and there are various conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
Questions that your conveyancing solicitor is likely to ask in relation to your Metro Bank Transfer of Equity
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
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 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?
Please confirm if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?
Important warnings to consider in in addition to the above Metro Bank transfer of equity information :
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 Metro Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with 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 lawyer will check with Metro 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 Metro 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Metro Bank.
Preparing the Transfer of Equity with a Metro 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 Metro 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 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.