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Top seven questions relating to Secure Trust Bank transfer of equity

  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Secure Trust Bank?
  • I am disposing of my share of a property in Hendon to the other co-owners fiance, they are sticking with Secure Trust Bank being the the existing mortgage company. We are in heated discussion as to who must cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the charges for?
  • I jointly own a property in Crabtree , with a Secure Trust Bank loan with my former partner. He and his fiance are going to buy me out. We had approval 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 (apparently). Is it possible for us to do the Land Registry formalities?
  • My wife and I jointly own a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name to mitigate tax on the letting income. Assuming Secure Trust Bank are content with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • Is it possible to apply to request a further advance from Secure Trust Bank as part of a Transfer of Equity?

Examples of questions in a conveyancing solicitor questionnaire concerning a Secure Trust Bank Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Has consent been obtained from Secure Trust Bank to the proposed transfer of equity?

Where 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” Form.

Please give the details of anyone to be added to the title deeds?

Important warnings to consider in further to the above Secure Trust Bank transfer of equity Questions and Answers :

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, the lease may require that you have a license to do so from 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 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 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 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 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 conveyancing solicitor 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 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.


Frequently asked questions relating to Secure Trust Bank transfer of equity