Top seven questions relating to Reliance Bank transfer of equity

• My current mortgage is with Reliance Bank. Can I transfer equity to someone under eighteen years old?
• I am disposing of my equity in house in Hendon to the other co-owners fiance, they are sticking with Reliance Bank being the the existing mortgage company. We are haggling as to who should cover the legal bill for the transfer of equity. Is this usually split or is one of us obliged to cover the legal bill?
• What if my application doesn't meet Reliance Bank lending criteria for a transfer of equity?
• Have recently separated from my wife of thirty years. I'm now living with my parents again and she wants to remain in the apartment and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the Reliance Bank home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being walked over
• At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is taking place at the same time as a switching mortgage via Reliance Bank?
• My former husband are looking to get a lawyer in place for a remortgage with Reliance Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over UK. Do we need to have a conveyancer local to us?
• I co-own a house in Heathfield , with a Reliance Bank mortgage with my former partner. Him and his fiance are going to buy me out. We had consent from Reliance Bank to replace my name with hers. The transfer of equity needs to be done by a conveyancer for Reliance Bank (supposedly). Is it possible for us to do the Land Registry change?

Sample of questions in a conveyancer form relating to Reliance Bank Transfer of Equity

Important warnings to consider in in addition to the above Reliance 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 Reliance 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 have a license to do so from the freeholder. If such terms are not adhered to 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 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 conveyancer 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 the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Reliance 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 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 conveyancer 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.