LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Sainsburys Bank

Common questions relating to Sainsbury's Bank transfer of equity

  • Can I apply to borrow more money from Sainsbury's Bank as part of a Transfer of Equity?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Sainsbury's Bank?
  • My decree absolute is through as is the consent order. Now I must sort out the transfer of equity at the land registry and the Sainsbury's Bank mortgage. I have asked Sainsbury's Bank for the transfer of equity forms. What do I do now?
  • How much the typical legal charges are for a transfer of equity? I need to transfer equity and refinance - moving over to Sainsbury's Bank - and have been quoted £250 plus VAT by Sainsbury's Bank's approved conveyancing solicitor, Have I been over quoted?
  • I jointly own a property in Romsey , with a Sainsbury's Bank loan with my ex partner. He and his fiance are going to buy me out. We had consent from Sainsbury's Bank to replace my name with hers. The transfer of equity needs to be done by a lawyer for Sainsbury's Bank (supposedly). Is it possible for us to deal with the Land Registry formalities?
  • My partner and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name to reduce our tax on the letting income. If Sainsbury's Bank are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Sainsbury's Bank?

Examples of information requested in a lawyer questionnaire concerning a Sainsbury's Bank Transfer of Equity

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

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

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

Please give the name(s) and addresse(s) of anyone to be added to the property title?

Please provide the details of anyone who jointly owns the property with you?

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in further to 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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed 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 cases, 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 market value of the property at the time of completion of the transfer of equity transaction.
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.

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 Sainsburys Bank transfer of equity