Santander transfer of equity: q and a’s
- I co-own a property in Ampthill , with a Santander loan with my former husband. Him and his fiance are going to buy me out. We had consent from Santander to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Santander (apparently). Is it possible for us to do the Land Registry formalities?
- How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Santander - and have been quoted Three Hundred pounds excluding VAT by Santander's approved conveyancing solicitor, Have I been over quoted?
- My Santander home loan we jointly entered into with ex, who is agreeable to be removed and let me have the property. Santander have consented to the transfer of equity to my individual name. Do Santander write my employer to confirm my salary?
- As things stand I have a joint Santander mortgage with my cousin and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to buy somewhere with my partner. The remaining mortgage is approx 175k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- Me and a friend got a joint mortgage with Santander on a property in 2013. I am now thinking of buying a flat on my own and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any issue with Santander with him being on the hook for the total loan rather than only part of it?
- I am disposing of my share of a house in Warwick to the other co-owners fiance, they are reapplying to Santander. We are in heated discussion as to who must pay the fees for the transfer of equity. Should this be shared or is one of us liable for the legal bill?
- I am hoping to remortgage my home in Winchelsea
changing from Lloyds TSB to Santander. The flat is jointly owned but I would like it to be in my sole name once I remortgage. My wife has verbally consented to this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
Sample of questions in a conveyancer form concerning a Santander Transfer of Equity
Have you approached Santander to obtain consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the 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 where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Important warnings to consider in in addition to the above Santander transfer of equity Info :
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, 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 the lease. This could potentially result in 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 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 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Santander.
Preparing the Transfer of Equity with a Santander 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 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 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.