Santander transfer of equity example support desk enquires
- I own a property in Crabtree
, with a Santander loan with my former partner. He and his new partner are going to acquire my share. We had the go ahead from Santander to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Santander (supposedly). In order to save fees can I do the Land Registry formalities?
- As things stand I have a joint Santander mortgage with my brother and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The outstanding mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- Can I transfer the equity held in my property with my Santander home loan?
- What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Santander - and have been quoted £250 plus VAT by Santander's appointed conveyancer, Have I been over quoted?
- I am planning on removing a name from a joint mortgage and the Santander require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Littleborough
conveyancer to deal with the transfer of equity? They need to be on the Santander conveyancing panel.
- I am completing a Santander transfer of equity application and have arrived at the part that asks about defaults etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit score. Do I need to reveal these?
- I am considering refinancing my flat in Romsey
does my lawyer need to be on the Santander Conveyancing panel. The conveyancing also involves a transfer of equity.
Questions that your lawyer may ask regarding your Santander Transfer of Equity
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Is it the case that one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the details of those who jointly own the property with you?
General Advice to read in supplemental 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 require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 transaction.
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 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.
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.