Frequently asked questions relating to Santander transfer of equity

• I already have a mortgage with Santander and am maintaining my current mortgaging but wish to have it in my sole name so my ex won't be on it any longer. How long do Santander take to deal with the application?
• Three years ago I bought a apartment without my partner's name on the deeds. My advised it is due to the fact that she was not in the mortgage with Santander. I'm wondering is there any way that I can put her name on the documents at HMLR?
• Can I apply to borrow more money from Santander as part of a Transfer of Equity?
• My Santander mortgage is in joint names with ex, who has agreed to come off the deeds and let me have the property. Santander have consented to the transfer of equity to me solely. Will Santander call my boss to verify my salary?
• I intend to remortgage my apartment in Timperley switching from Yorkshire Building Society to Santander. The apartment is jointly owned but wish for it to be in my sole name once I switch. My wife is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Santander?
• The financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with Santander - Is it not simpler better to just instruct them?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Santander Transfer of Equity

Caveats to be read in supporting 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 premises

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 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 is dependent on the valuation of the property at the time of completion 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 lawyer 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.