Common questions relating to Secure Trust Bank transfer of equity

• I got my Decree Absolute in 2012. Foolishly I never dealt with the transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Secure Trust Bank is content to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
• I am completing a Secure Trust Bank transfer of equity request and have arrived at the questions concerning defaults etc. There are some debts that I have been paying off since 2008, I understand that they no longer remain my credit rating. Do I need to set these out?
• I co-own a flat in Witham , with a Secure Trust Bank loan with my former husband. He and his fiance are going to buy me out. We had consent from Secure Trust Bank to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Secure Trust Bank (supposedly). In order to save fees can I deal with the Land Registry change?
• My Secure Trust Bank mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Secure Trust Bank will permit the transfer of equity to my individual name. Will Secure Trust Bank call my company to check my salary?
• Will I incur any fees for a Transfer of Equity where the current home loan is with Secure Trust Bank?
• Our financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Secure Trust Bank - Surely it’s advisable to just instruct them?
• What if my application doesn't meet Secure Trust Bank lending criteria for a transfer of equity?

Sample of questions in a conveyancer questionnaire concerning a Secure Trust Bank Transfer of Equity

Important warnings to consider in supplemental the above Secure Trust Bank transfer of equity Advice :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Secure Trust Bank 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 require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of your covenants under 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 conveyancer will check with Secure Trust Bank 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 Secure Trust Bank 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 market value of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Secure Trust Bank 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 Secure Trust Bank 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 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.