Examples of recent questions relating to Metro Bank transfer of equity

• Can I transfer the equity held in my property with my Metro Bank home loan?
• Me and a friend got a joint mortgage with Metro Bank on a apartment about a year ago. I am now thinking of buying a flat on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any problem with Metro Bank with him being solely liable for the total mortgage rather than only half of it?
• I got my Decree Absolute in 2011. For some reason I never got around to transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Metro Bank is content to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
• Will I incur any charges for a Transfer of Equity where the current mortgage is with Metro Bank?
• What is the process for having someone removed from the deeds to a property if the home loan is with Metro Bank
• I jointly own a house in Friern Barnet , with a Metro Bank loan with my former partner. He and his new partner are going to buy me out. We had approval from Metro Bank to substitute my name with hers. The transfer of equity needs to be completed by a conveyancer for Metro Bank (supposedly). Can we deal with the Land Registry change?
• My fiance and myself equally own a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming Metro Bank are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.

Examples of questions in a lawyer form relating to Metro Bank Transfer of Equity

Information to consider in supplemental 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

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation 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 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 conveyancing solicitor 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Metro Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 lawyer 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.