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Santander transfer of equity: q and a’s

  • I am considering remortgaging my property in Sedgefield does my lawyer have to be on the Santander Solicitor panel. The conveyancing also involves a transfer of equity.
  • My divorce has gone through as is the consent order. Now I must deal with the transfer of equity for the property and the Santander mortgage. I have called Santander for the transfer of equity forms. What are my next steps?
  • I own a apartment in Miles Platting , with a Santander loan with my ex husband. He and his fiance are going to buy me out. We had approval from Santander to substitute my name with hers. The transfer of equity needs to be completed by a conveyancer for Santander (apparently). Can we do the Land Registry formalities?
  • Online research suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and simultaneously remortgaging with Santander
  • I am selling my equity in house in Birmingham to the other co-owners fiance, they are sticking with Santander as the the existing lender. We are haggling as to who must pay the charges for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
  • I already have a home loan with Santander and am retaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my former partner will come off the deeds. How long does the whole transfer of equity process take?
  • I got my Decree Absolute four years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Santander is willing to transfer the full equity in my name (financial checks done). Does she need a lawyer?

Questions that your conveyancer could ask about your Santander Transfer of Equity

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

Has consent been obtained from Santander to the proposed transfer of equity?

Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Please give the details of anyone to be added to the title deeds?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Please list all persons who occupy the property, their respective ages and relationships to you.

Caveats to be read in in addition to the above Santander transfer of equity information :

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 premises

Should the tenure of your property be 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 restrictions are not strictly observed 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 conveyancing solicitor 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 market value of the property at the time of completion 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 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 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.


Frequently asked questions relating to Santander transfer of equity