Questions and answers: Santander transfer of equity

• My divorce is through as is the consent order. Now I need to address the transfer of equity on title deeds and the Santander mortgage. I have asked Santander for the transfer of equity application. What do I do now?
• I intend to remortgage my flat in Winchelsea switching from Bank of Scotland to Santander. The maisonette is jointly owned but propose for it to be in my sole name when I remortgage. My husband has agreed to this and is willing to transfer equity but neither of us want to incur conveyancer fees.
• My wife and I jointly own a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on the letting income. Assuming Santander are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
• I acquired a flat with a friend in 2010 Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Santander mortgage. There is a 30k difference between the value the Santander hold and what the property would sell for currently. Can you offer any advice?
• I already have a mortgage with Santander and am retaining my existing mortgaging but applying to have it in my name only so my former wife will be removed from the mortgage. How long can it take for the paperwork to be processed?
• What is the process for having someone removed from the deeds to a house if the mortgage is with Santander
• My father passed away early last year leaving a mortgage-free semi to me and my brother 50:50. He has always lived in the house, there was a condition in her will specifying that the housecould not be sold for 24 months after her passing so he could remain there for a specified time frame. He now wishes 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 home loan in the traditional way to buy my half from me?

Information that may be required from your conveyancer could ask about your Santander Transfer of Equity

General Advice to read in further to the above Santander 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 Santander conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in 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 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 as a result of 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 lawyer will check with Santander 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 Santander 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.

Preparing the Transfer of Equity with a Santander 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 Santander 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 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.