Common questions relating to Sainsbury's Bank transfer of equity

• My Sainsbury's Bank home loan we jointly entered into with ex, who is agreeable to come off the deeds and let me have the property. Sainsbury's Bank will permit the transfer of equity to me solely. Do Sainsbury's Bank call my employer to confirm my salary?
• I intend to remortgage my home in Friern Barnet switching from HSBC to Sainsbury's Bank. The home is jointly owned but I would like it to be in my name only as and when I remortgage. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor charges.
• As things stand I have a joint Sainsbury's Bank mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my partner. The remaining mortgage is in the region 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
• I am answering a Sainsbury's Bank transfer of equity application and have arrived at the part regarding defaults etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit rating. Am I obliged to disclose these?
• I understand we would need at least AP1 and TR1. Is this true?
• What is the process for adding or removing names (transfer of equity) to or from my Sainsbury's Bank mortgage account?
• Am I best advised cancel the direct debit for my mortgage with Sainsbury's Bank as soon as a date for my remortgage and transfer of equity has been set?

Sample of information requested in a conveyancing solicitor form relating to Sainsbury's Bank Transfer of Equity

Information to consider in in addition to the above Sainsbury's Bank transfer of equity Questions and Answers :

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 Sainsbury's Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Sainsbury's Bank Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 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.