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Questions and answers: Metro Bank transfer of equity

  • Our financial adviser has suggested using their conveyancer for our Transfer of Equity plus remortgage with Metro Bank - Surely it’s easier to just use them?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Metro Bank?
  • I am searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Metro Bank. I want to avoid being ripped off but with so many conveyancing firms who do transfer of equity conveyancing to choose from...how do I know which one is best appoint?
  • I plan to remortgage my maisonette in Winchelsea changing from Halifax to Metro Bank. The flat is currently in joint names but intend for it to be in my sole name when I switch. My wife has agreed to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
  • Am I best advised cancel the direct debit for my mortgage with Metro Bank as soon as a date for my remortgage and transfer of equity has been set?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Metro Bank?
  • I already have a mortgage with Metro Bank and am maintaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my former husband won't be on it any longer. How long can it take for the forms to be processed?

Questions that your conveyancing solicitor may ask in relation to your Metro Bank Transfer of Equity

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Please give the name(s) and addresse(s) of anyone to be removed from the property title?

Please list all persons who occupy the property, their respective ages and relationships to you.

Who will be responsible for the costs of the Transfer of Equity?

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

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?

Important warnings to consider in supporting the above Metro 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 Metro Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. 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.

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 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 market value 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on 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.


Frequently asked questions relating to Metro Bank transfer of equity