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Sainsburys Bank

Recently asked questions relating to Sainsbury's Bank transfer of equity

  • I already have a home loan with Sainsbury's Bank and am retaining my existing mortgaging but applying to have it in my name alone so my ex will no longer be on the mortgage. How long can it take for the forms to be processed?
  • What if my application doesn't meet Sainsbury's Bank lending criteria for a transfer of equity?
  • Sainsbury's Bank yesterday agreed I can take over the mortgage on the house. I had applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • I own a apartment in Friern Barnet , with a Sainsbury's Bank mortgage with my ex husband. Him and his fiance are going to acquire my share. We had consent from Sainsbury's Bank to replace my name with hers. The transfer of equity has to be completed by a conveyancer for Sainsbury's Bank (apparently). Is it possible for us to deal with the Land Registry change?
  • My Sainsbury's Bank mortgage is in joint names with ex, he has agreed to be removed and put the house in my name alone. Sainsbury's Bank will permit the transfer of equity to my individual name. Will Sainsbury's Bank call my boss to check my salary?
  • I am in the process of refinancing my apartment in Ampthill does my lawyer have to be on the Sainsbury's Bank Conveyancing panel. The conveyancing also involves a transfer of equity.

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

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

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

Please provide the details of anyone to be added to the title deeds?

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

General Advice to read in further to the above Sainsbury's Bank transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under 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 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 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 varies based on the valuation of the property at the conclusion 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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to Sainsburys Bank transfer of equity