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Top seven questions relating to Secure Trust Bank transfer of equity

  • My existing home loan is with Secure Trust Bank. Can I transfer equity to someone less than eighteen years old?
  • I currently have a joint Secure Trust Bank mortgage with my brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty payable?
  • My Secure Trust Bank home loan we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. Secure Trust Bank will permit the transfer of equity to my individual name. Do Secure Trust Bank get in touch with my employer to confirm my salary?
  • I am looking for a lawyer to handle my transfer of equity. Secure Trust Bank are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he will likely get a kickback for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
  • When it comes to transfer of equity conveyancing involving refinance with Secure Trust Bank should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My dad passed away seven months ago leaving a loan-free semi to me and my half brother equally. Having continues to reside at the property, there was a condition in her will specifying that the housecould not be sold for 24 months following her death so he could remain there for a while. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to acquire my share?
  • What can I do where I am unhappy with the conveyancing solicitor who undertook my transfer of equity conveyancing?

Questions that your lawyer is likely to ask about your Secure Trust Bank Transfer of Equity

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

Have you approached Secure Trust Bank to seek consent to the Transfer of Equity

Please let us know if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Can you provide the details of those who jointly own the property with you?

Please give the details of anyone to be removed from the property title?

General Advice to read in further to the above Secure Trust Bank 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 Secure Trust Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of 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 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 conveyancing solicitor 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Secure Trust Bank.

Preparing the Transfer of Equity with a Secure Trust Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.


Frequently asked questions relating to Secure Trust Bank transfer of equity