Santander transfer of equity example support desk enquires
- My ex-partner and I are are seeking to find a quality conveyancing solicitor to assist in a transfer of equity and refinance with Santander. I I am fearful of by bill escalating out of control and there's plenty conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- At what point do I pay stamp duty chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a remortgage with Santander?
- My friend and I got a joint mortgage with Santander on a property in 2013. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any problem with Santander with him being solely liable for the total loan as opposed to only part of it?
- I already have a home loan with Santander and am retaining my current mortgaging but applying to have have the equity transferred to my name only so my former wife won't be on it any longer. How long do Santander take to deal with the application?
- Law week I split up with my partner of thirty years. I'm now back with my mum and dad and she wants to remain in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the mortgage with Santander? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
- I am planning on removing a name from a joint mortgage and the Santander need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Crabtree
conveyancer to deal with the transfer of equity? They need to be on the Santander conveyancing panel.
- When it comes to transfer of equity conveyancing involving refinance with Santander should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Questions that your conveyancing solicitor is likely to ask regarding your Santander Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in further to the above Santander 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 Santander 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 obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Santander your property may be repossessed.
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.
Information provided 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.