Secure Trust Bank transfer of equity example support desk enquires
- I acquired a flat with my brother five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Secure Trust Bank mortgage. There is a 30k difference between the value the Secure Trust Bank say and what the property would sell for currently. Can you offer any advice?
- My decree absolute is through as is the consent order. Now I need to address the transfer of equity on title deeds and the Secure Trust Bank mortgage. I have called Secure Trust Bank for the transfer of equity forms. What do I do now?
- Is it possible to transfer the equity held in my property with my Secure Trust Bank mortgage?
- I jointly own a flat in Heathfield
, with a Secure Trust Bank loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from Secure Trust Bank to substitute my name with hers. The transfer of equity has to be completed by a lawyer for Secure Trust Bank (apparently). In order to save fees can I deal with the Land Registry formalities?
- My existing home loan is with Secure Trust Bank. Can I transfer equity to someone who is not yet eighteen years old?
- I am filling out a Secure Trust Bank transfer of equity form and have arrived at the part concerning debts etc. There are some debts that I have been reducing for a number of years, I understand that they no longer remain my credit records. Am I obliged to set these out?
- My father died early last year leaving a mortgage-free house to me and my brother in equal shared. Having continues to reside at the premises, there was a condition in the will specifying that the propertycould not be sold for three years after her death so he could remain there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
Information that may be required from your conveyancer may ask about your Secure Trust Bank Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Is it the case that one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Information to consider in in addition to the above Secure Trust Bank transfer of equity Advice :
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 titles
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 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 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 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.