Frequently asked questions relating to Metro Bank transfer of equity
- My divorce is through as is the consent order. Now I must deal with the transfer of equity at the land registry and the Metro Bank home loan. I have contacted Metro Bank for the transfer of equity forms. What are my next steps?
- My partner and I co-own a house in Blaenavon
. Home loan is with Metro Bank. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be easy to so?
- What is the process for adding or removing names (transfer of equity) to or from my Metro Bank mortgage account?
- My dad died seven months ago leaving a unencumbered property to me and my step brother in equal shared. Having continues to reside at the property, there was a condition in the will saying the housecould not be sold for three years following her passing so he could continue to live there for a while. He now wants to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to acquire my equity?
- At what stage do I cover the costs of stamp duty payable for the transfer of equity in my property in my sole name which is happening at the same time as a remortgage via Metro Bank?
- Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with Metro Bank?
- Have recently split up with my partner of twenty years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with Metro Bank? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to
Sample of information requested in a lawyer form relating to Metro Bank Transfer of Equity
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 clarify if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Please give the details of anyone to be removed from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please provide a copy of your National Insurance Number?
Information to consider in in addition to the above Metro 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 Metro 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 freeholder. If such conditions 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 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 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 conclusion of the transfer of equity transaction.
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 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.