Frequently asked questions relating to Secure Trust Bank transfer of equity
- I already have a mortgage with Secure Trust Bank and am keeping my current mortgaging but seeking to have have the equity transferred to my name only so my former wife will come off the mortgage. How long do Secure Trust Bank take to process the application?
- I own a property in Dunnington
, with a Secure Trust Bank loan with my former partner. Him and his fiance are going to acquire my share. We had the go ahead from Secure Trust Bank to substitute my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Secure Trust Bank (supposedly). Is it possible for us to deal with the Land Registry formalities?
- I am under the impression we would need at least AP1 and TR1. Is this true?
- Given that we have been 5 years separated I have made the decision to give up my interest in the property to my husband who is re-mortgaging with Secure Trust Bank. Could this transfer of equity be completed within 28 days?
- My ex-fiance and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Secure Trust Bank. I I am concerned about by bill escalating out of control and there are many conveyancing practices who do transfer of equity conveyancing to choose from...who do I opt for?
- Me and a friend got a joint mortgage with Secure Trust Bank on a property a couple of years ago. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Would there be any potential issue with Secure Trust Bank with him being on the hook for the total loan rather than only half of it?
- What is the process for having a person removed from the deeds to a property where the mortgage is with Secure Trust Bank
Examples of questions in a conveyancing solicitor questionnaire concerning a Secure Trust Bank Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
If 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?
Have you approached Secure Trust Bank to obtain consent to the Transfer of Equity
Can you provide the details of anyone who jointly owns the property with you?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Caveats to be read in further to the above Secure Trust Bank transfer of equity information :
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 properties
Should the tenure of your property be leasehold, provisions in 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.
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 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 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 the time of completion of the transfer of equity conveyancing.
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 conveyancer 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 lawyer 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.