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

  • I am selling my equity in flat in Birmingham to the other co-owners fiance, they are sticking with Sainsbury's Bank being the the existing mortgage company. We are in heated discussion as to who should cover the charges for the transfer of equity. Is this normally split or is one of us liable for the fees for?
  • What if my application doesn't meet Sainsbury's Bank lending criteria for a transfer of equity?
  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Sainsbury's Bank - and have been quoted £250 excluding VAT by Sainsbury's Bank's approved conveyancing solicitor, Have I been over quoted?
  • Two years ago I bought a apartment without my fiance’s name on the ownership paperwork. My conveyancer said it is due to the fact that she was not in the mortgage with Sainsbury's Bank. Is it possible for me to put her name on the deeds?
  • My dad died last May leaving a unencumbered semi to me and my step brother in equal shared. Having continues to reside at the house, there was a provision in the will saying the premisescould not be sold for 24 months following her passing so he could reside there for a prescribed period. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to buy my half from me?
  • I am in the process of remortgaging my home in Wakefield does my lawyer have to be on the Sainsbury's Bank Conveyancing panel. The conveyancing also involves a transfer of equity.

Examples of information requested in a lawyer questionnaire relating to Sainsbury's Bank Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Who will be responsible for the costs of the Transfer of Equity?

If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Has consent been obtained from Sainsbury's Bank to the proposed transfer of equity?

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 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 breach of your covenants under the lease. This could trigger 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 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
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 conveyancing solicitor 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 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