Top seven questions relating to Sainsbury's Bank transfer of equity
- Me and my partner co-own a flat in Littleborough
. Mortgage is with Sainsbury's Bank. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be straightforward?
- I am filling out a Sainsbury's Bank transfer of equity request and have arrived at the questions concerning defaults etc. I do some debts that I have been reducing for a number of years, in fact they have long since disappeared from my credit rating. Do I need to disclose these?
- My current home loan is with Sainsbury's Bank. Can I transfer equity to someone under 18 years old?
- Me and a friend got a joint mortgage with Sainsbury's Bank on a apartment in 2013. I am now thinking of buying a property by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any concerns with Sainsbury's Bank with him being responsible for the total loan rather than only half of it?
- My mum died early last year leaving a loan-free semi to me and my half brother in equal shared. Having continues to reside at the house, there was a condition in her will specifying that the propertycould not be sold for three years after her passing so he could reside there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my equity?
- I am disposing of my share of a property in Woodside to my co-owners fiance, they are reapplying to Sainsbury's Bank. We are haggling as to who must pay the legal bill for the transfer of equity. Is this normally split or is one party liable for the costs of?
- When it comes to transfer of equity conveyancing involving refinance with Sainsbury's Bank should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Examples of questions in a conveyancing solicitor questionnaire concerning a Sainsbury's Bank Transfer of Equity
Can you provide the details of those who jointly own the premises with you?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Sainsbury's Bank to the proposed transfer of equity?
Please provide the details of anyone to be removed from the title deeds?
General Advice to read in supplemental the above Sainsbury's Bank transfer of equity Advice :
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 Sainsbury's 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 have a license to do so from 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.
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 Sainsbury's 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 Sainsbury's 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Sainsbury's Bank.
Preparing the Transfer of Equity with a Sainsbury's 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 Sainsbury's 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.