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Top seven questions relating to Reliance Bank transfer of equity

  • Having been 4 years separated I have made the decision to give up my share of our house to my husband who is re-mortgaging with Reliance Bank. Can a transfer of equity be completed within 28 days?
  • My brother and I got a joint mortgage with Reliance Bank on a house about a year ago. I am now looking to get a property on my own and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any issue with Reliance Bank with him being on the hook for the total loan as opposed to only half of it?
  • I am am in need of a conveyancer to deal with my transfer of equity. Reliance Bank are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely get a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
  • I am hoping to refinance my flat in Wakefield switching from Accord to Reliance Bank. The apartment is currently in joint names but intend for it to be in my sole name as and when I switch. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second lawyer involved.
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Reliance Bank?
  • I am are looking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Reliance Bank. I really don't want to get ripped off but with plenty conveyancing organisations who do transfer of equity conveyancing out there...how do I know which one is best appoint?
  • I am under the impression we would need at least AP1 and TR1. Is this true?

Questions that your conveyancing solicitor may ask about your Reliance Bank Transfer of Equity

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

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

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

Please provide the details of anyone to be extracted from the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

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

Caveats to be read in further to the above Reliance Bank transfer of equity Info :

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

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 varies based on the valuation 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 Reliance Bank.

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 conveyancing solicitor 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 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 Reliance Bank transfer of equity