Examples of recent questions relating to Secure Trust Bank transfer of equity
- Is it sensible to cancel the direct debit for my mortgage with Secure Trust Bank as soon as a date for my remortgage and transfer of equity has been agreed?
- My mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Secure Trust Bank - won’t it be easier to just instruct them?
- My Secure Trust Bank mortgage is in joint names with ex, who has agreed to be removed and let me have the property. Secure Trust Bank will permit the transfer of equity to my individual name. Will Secure Trust Bank contact my employer to verify my salary?
- My former husband are planning to get a conveyancing solicitor lined up for a refinance with Secure Trust Bank. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over the country. Is it important to instruct a conveyancing solicitor local to us?
- I bought a property with a friend five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Secure Trust Bank mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I am selling my equity in house in Birmingham to my co-owners fiance, they are sticking with Secure Trust Bank as the the existing lender. We are haggling as to who should pay the fees for the transfer of equity. Should this be shared or is one of us liable for the legal bill?
- Me and a friend got a joint mortgage with Secure Trust Bank on a apartment a couple of years ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Assuming we can agree a figure what happens next? Is there likely to be any problem with Secure Trust Bank with him being solely liable for the total loan rather than only part of it?
Information that may be required from your lawyer may ask regarding your Secure Trust Bank Transfer of Equity
Has consent been obtained from Secure Trust Bank to the proposed transfer of equity?
Is it the case that one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please list all persons who occupy the property, their respective ages and relationships to you.
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Information to consider in supplemental the above Secure Trust Bank transfer of equity information :
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 premises
If your property is leasehold, 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 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 lawyer 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 valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Secure Trust Bank your property may be repossessed.
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 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.