Questions and answers: Secure Trust Bank transfer of equity
- As things stand I have a joint Secure Trust Bank mortgage with my step-brother and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a place with my partner. The outstanding mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax due?
- My mum died half a year ago leaving a mortgage-free property to me and my brother 50:50. Having continues to reside at the premises, there was a provision in the will specifying that the housecould not be sold for three years after her passing so he could remain there for a specified time frame. He now wants to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to acquire my half from me?
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Secure Trust Bank mortgage account?
- I got divorced three years ago. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Secure Trust Bank is content to transfer the property and loan in my name (affordability checks done). Does she need a lawyer?
- I recently purchased a flat without my wife's name on the ownership paperwork. My conveyancer advised it is because she was not in the mortgage with Secure Trust Bank. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
- I intend to remortgage my home in Dunnington
moving from Birmingham Midshires to Secure Trust Bank. The flat is currently in joint names but intend for it to be in my sole name when I remortgage. My former partner has agreed to this and is willing to transfer equity but neither of us want to incur conveyancer fees.
- I am remortgaging my house in Miles Platting
does my lawyer need to be on the Secure Trust Bank Solicitor panel. The conveyancing also involves a transfer of equity.
Sample of information requested in a conveyancing solicitor form concerning a Secure Trust Bank Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
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 where you are providing any payment for the Transfer of Equity and to whom and specify the amount?
General Advice to read in supplemental 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 premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 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 conclusion 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 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 lawyer 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 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.
