Top seven questions relating to Secure Trust Bank transfer of equity

• Taking into account that we have been 4 years estranged I have decided to transfer my share of our house to my husband who is re-mortgaging with Secure Trust Bank. Could this transfer of equity be completed in four weeks?
• I jointly own a house in Blaenavon , with a Secure Trust Bank loan with my former partner. He and his fiance are going to acquire my share. We had consent from Secure Trust Bank to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Secure Trust Bank (supposedly). In order to save fees can I deal with the Land Registry formalities?
• My partner and I co-own a house in Romsey . Mortgage is with Secure Trust Bank. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?
• Me and a friend got a joint mortgage with Secure Trust Bank on a flat in 2013. I am now thinking of buying a property on my own and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential issue with Secure Trust Bank with him being responsible for the total mortgage as opposed to only half of it?
• I am thinking of refinancing my apartment in Wakefield does my lawyer need to be on the Secure Trust Bank Solicitor panel. The conveyancing also involves a transfer of equity.
• My dad died half a year ago leaving a unencumbered house to me and my half brother 50:50. Having continues to reside at the premises, there was a provision in her will specifying that the housecould not be sold for 24 months after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
• Can I transfer the equity held in my property with my Secure Trust Bank home loan?

Sample of questions in a conveyancer questionnaire relating to Secure Trust Bank Transfer of Equity

Caveats to be read in supplemental the above Secure Trust Bank transfer of equity Questions and Answers :

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 obtain the consent of the landlord. If such terms are not adhered to 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 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 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 market value of the property at the conclusion of the transfer of equity transaction.

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 conveyancer 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 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.