Questions and answers: Sainsbury's Bank transfer of equity
- Me and my former fiance and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Sainsbury's Bank. I I am fearful of being overcharged but with various conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to select?
- Have recently separated from my ex of twenty years. I'm now back with my parents again and she wants to remain in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after redeeming the mortgage with Sainsbury's Bank? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being walked over
- I am remortgaging my property in Dunnington
does my lawyer have to be on the Sainsbury's Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
- Taking into account that we have been 5 years apart I have opted to relinquish up my share of the former home to my husband who is re-mortgaging with Sainsbury's Bank. Could this transfer of equity be done within four weeks?
- I purchased a house with my cousin five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Sainsbury's Bank mortgage. There is a 30k difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
- My Sainsbury's Bank mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and put the house in my name alone. Sainsbury's Bank will permit the transfer of equity to me solely. Do Sainsbury's Bank contact my employer to confirm my salary?
- My father passed away last May leaving a loan-free house to me and my half brother in equal shared. Having continues to reside at the house, there was a provision in her will specifying that the propertycould not be sold for 2 years following her death so he could continue to live there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
Questions that your conveyancing solicitor is likely to ask in relation to your Sainsbury's Bank Transfer of Equity
Please give the details of anyone to be added to the property title?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify the amount?
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?
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?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Caveats to be read in supplemental the above Sainsbury's Bank transfer of equity Info :
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 titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of 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 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Sainsbury's Bank your property may be repossessed.
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.
