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Reliance Bank

Examples of recent questions relating to Reliance Bank transfer of equity

  • How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is taking place at the same time as a refinancing via Reliance Bank?
  • My mother died last January leaving a mortgage-free house to me and my half brother 50:50. He has always lived in the house, there was a clause in the will specifying that the propertycould not be sold for 2 years after her death so he could reside there for a prescribed period. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to acquire my share?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • I plan to remortgage my flat in Ampthill switching from Natwest to Reliance Bank. The home is jointly owned but wish for it to be in my sole name as and when I transfer. My wife has verbally consented to this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.
  • I am are looking to find an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Reliance Bank. I want to avoid being ripped off and there are so many conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
  • I am disposing of my share of a house in Hendon to the other co-owners fiance, they are reapplying to Reliance Bank. We are haggling as to who must cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the fees for?
  • I am remortgaging my home in Timperley does my lawyer have to be on the Reliance Bank Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your lawyer may ask regarding your Reliance Bank Transfer of Equity

Has consent been obtained from Reliance Bank to the proposed 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?

Can you give the details of anyone who jointly owns the premises with you?

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

Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Information to consider in supplemental the above Reliance 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 Reliance Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require 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 potentially result in 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 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 the time of completion of the transfer of equity conveyancing.
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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information contained within 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