Sainsbury's Bank transfer of equity: q and a’s
- Law month I separated from my ex of thirty years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion do I get. Is it half of the equity after paying off the mortgage with Sainsbury's Bank? I assume proper valuations are required but I really need ensure that I'm getting the best deal
- My existing mortgage is with Sainsbury's Bank. Can I transfer equity to someone who is not yet eighteen years old?
- Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Sainsbury's Bank?
- I got my Decree Absolute four years ago. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Sainsbury's Bank is happy to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?
- I purchased a property with my brother in 2010 Since then, we have both got married. We are now intending 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?
- Me and my former wife and I are searching for a trustworthy conveyancing solicitor to help me sell in a transfer of equity and refinance with Sainsbury's Bank. I am aware of the possibility of getting ripped off but with plenty conveyancing firms who do transfer of equity conveyancing to pick from...who's the best?
- My wife and myself have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Sainsbury's Bank are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
Examples of questions in a lawyer form concerning a Sainsbury's Bank Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please clarify where you are making any payment for the Transfer of Equity and to whom and specify any such sums?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in further 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 landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in 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 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 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 is dependent on the valuation of the property at finalisation 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 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 conveyancer 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.