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Reliance Bank

Recently asked questions relating to Reliance Bank transfer of equity

  • My partner and I jointly own a flat in Winchelsea . Home loan is with Reliance Bank. I wish to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be simple?
  • What are the average conveyancing charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Reliance Bank - and have been quoted £250 excluding VAT by Reliance Bank's approved lawyer, Is this a reasonable price?
  • I jointly own a house in Ampthill , with a Reliance Bank loan with my ex partner. Him and his fiance are going to buy me out. We had consent from Reliance Bank to remove my name with hers. The transfer of equity has to be done by a lawyer for Reliance Bank (apparently). Can we do the Land Registry change?
  • Reliance Bank yesterday agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?
  • I am filling out a Reliance Bank transfer of equity request and have come to the section regarding debts etc. There are some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Do I need to declare these?
  • At what point do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage with Reliance Bank?
  • Me and my former wife and I are are seeking to find an affordable conveyancing lawyer to assist in a transfer of equity and refinance with Reliance Bank. I I am concerned about being overcharged and there are many conveyancing firms who do transfer of equity conveyancing to pick from...how do I know which one is best select?

Questions that your lawyer is likely to ask about your Reliance Bank Transfer of Equity

Have you approached Reliance Bank to seek consent to the Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Would you like us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please give the details of anyone to be added to the title deeds?

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..

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

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, 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 violation 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 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 conveyancing solicitor will check with Reliance 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 Reliance 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Reliance Bank your property may be repossessed.

Preparing the Transfer of Equity with a Reliance 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 Reliance 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.

Content 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 Reliance Bank transfer of equity