Secure Trust Bank transfer of equity: q and a’s
- Been reviewing online blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and at the same time switching mortgage with Secure Trust Bank
- My father passed away last March leaving a unencumbered property to me and my half brother in equal shared. Having continues to reside at the premises, there was a provision in her will specifying that the premisescould not be sold for 24 months following her passing so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
- What are my options where I am unhappy with the lawyer who did our transfer of equity conveyancing?
- Have recently separated from my partner of thirty years. I'm now back with my parents again and she wishes to remain in the property and buy me out. What portion do I get. Is it 50% of the equity after discharging the Secure Trust Bank home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
- My Secure Trust Bank mortgage is in joint names with ex, he has agreed to come off the mortgage and put the house in my name alone. Secure Trust Bank will permit the transfer of equity to me solely. Will Secure Trust Bank call my employer to confirm my salary?
- I am searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Secure Trust Bank. I want to avoid being ripped off and there are various conveyancing practices who do transfer of equity conveyancing to choose from...who's the best?
- My divorce is through as is the consent order. Now I must deal with the transfer of equity at the land registry and the Secure Trust Bank home loan. I have called Secure Trust Bank for the transfer of equity application. What happens next?
Questions that your lawyer may ask regarding your Secure Trust Bank Transfer of Equity
Has consent been obtained from Secure Trust Bank to the proposed transfer of equity?
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” Form.
Who will be responsible for the costs of the Transfer of Equity?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Information to consider in further 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 premises
If your property is leasehold, provisions in 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 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
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 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.
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.