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Common questions relating to Metro Bank transfer of equity

  • The mortgage broker has recommended their lawyer for my Transfer of Equity plus remortgage with Metro Bank - won’t it be better to just use them?
  • My ex-wife and I are are seeking to find a value for money conveyancing lawyer to help me sell in a transfer of equity and refinance with Metro Bank. I I am concerned about appointing the wrong one and there are plenty conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
  • My current mortgage is with Metro Bank. Can I transfer equity to someone less than eighteen years old?
  • Have recently separated from my wife of twenty years. I'm now living with my mum and dad and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with Metro Bank? I assume proper valuations are required but I would like to be sure that I'm getting the best deal
  • What are my options where I am dissatisfied with the conveyancing solicitor who handled my transfer of equity conveyancing?
  • I am disposing of my equity in apartment in Birmingham to my co-owners husband, they are sticking with Metro Bank as the the existing mortgage company. We are debating as to who must cover the fees for the transfer of equity. Should this be split or is one party obliged to cover the charges for?
  • Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Metro Bank?

Information that may be required from your conveyancer is likely to ask in relation to your Metro Bank Transfer of Equity

Is it the case that one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please inform us where you are making any payment for the Transfer of Equity and to whom and notify us the amount?

Has consent been obtained from Metro Bank to the proposed transfer of equity?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

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

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

Important warnings to consider in conjunction with 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 properties

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Metro Bank your property may be repossessed.

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 provided on 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.


Frequently asked questions relating to Metro Bank transfer of equity