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Sainsbury's Bank transfer of equity: q and a’s

  • Two years ago I purchased a flat without my partner's name on the deeds. My conveyancer advised it is due to the fact that she was not in the loan offer with Sainsbury's Bank. Is it possible for me to put her name on the deeds?
  • My divorce is through as is the consent order. Now I have to address the transfer of equity for the property and the Sainsbury's Bank mortgage. I have asked Sainsbury's Bank for the transfer of equity application. What are my next steps?
  • I am are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Sainsbury's Bank. I want to avoid being ripped off and there's lots of conveyancing firms who do transfer of equity conveyancing to pick from...who's the best?
  • I currently have a joint Sainsbury's Bank mortgage with my step-brother and am investigating the option of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is approx 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
  • My ex are seeking to get a lawyer in place for a refinance with Sainsbury's Bank. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. Do we need to appoint a conveyancing solicitor local to us?
  • Taking into account that we have been three years estranged I have decided to relinquish up my share of the apartment to my husband who is refinancing with Sainsbury's Bank. Could this transfer of equity be completed within four weeks?
  • I am hoping to refinance my maisonette in Dunnington moving from Yorkshire Building Society to Sainsbury's Bank. The apartment is currently in joint names but I would like it to be in my name only as and when I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.

Information that may be required from your lawyer may ask in relation to your Sainsbury's Bank Transfer of Equity

Please provide the details of those who jointly own the property with you?

Please give the details of anyone to be removed from the property title?

Is there to 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 figure

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

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?

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

Important warnings to consider in supplemental the above Sainsbury's Bank transfer of equity Advice :

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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of 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 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 market value 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 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 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.


Frequently asked questions relating to Sainsburys Bank transfer of equity