Recently asked questions relating to Sainsbury's Bank transfer of equity
- I co-own a house in Winchelsea
, with a Sainsbury's Bank mortgage with my former partner. Him 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 completed by a lawyer for Sainsbury's Bank (apparently). Is it possible for us to do the Land Registry formalities?
- My divorce is through as is the consent order. Now I need to address the transfer of equity at the HMLR and the Sainsbury's Bank home loan. I have asked Sainsbury's Bank for the transfer of equity application. What are my next steps?
- I currently have a joint Sainsbury's Bank mortgage with my brother and am looking into the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is about 300k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Sainsbury's Bank?
- I got my Decree Absolute two years ago. For some reason I never dealt with the change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Sainsbury's Bank is willing to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
- I acquired a house with my cousin in 2009 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Sainsbury's Bank mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- Having been four years apart I have decided to give up my interest in our house to my husband who is refinancing with Sainsbury's Bank. Can a transfer of equity be completed in less than one month?
Questions that your conveyancer is likely to ask about your Sainsbury's Bank Transfer of Equity
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Is it the case that one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Would you like us to prepare Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide the details of those who jointly own the premises with you?
If 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?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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, provisions in 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 trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 lawyer 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 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 conveyancer 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 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.