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Frequently asked 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 co-own a apartment in Friern Barnet , with a Secure Trust Bank loan with my ex partner. He and his fiance are going to acquire my share. We had the go ahead from Secure Trust Bank to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Secure Trust Bank (apparently). Is it possible for us to do the Land Registry formalities?
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • Online reading suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously switching mortgage with Secure Trust Bank
  • I am in the process of removing a name from a joint mortgage and the Secure Trust Bank need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Witham conveyancer to deal with the transfer of equity? They need to be on the Secure Trust Bank conveyancing panel.
  • My Secure Trust Bank home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Secure Trust Bank have consented to the transfer of equity to my individual name. Do Secure Trust Bank get in touch with my employer to confirm my salary?
  • I am looking for a lawyer to handle my transfer of equity. Secure Trust Bank are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?

Information that may be required from your conveyancing solicitor may ask about your Secure Trust Bank Transfer of Equity

Can you give the name(s) and addresse(s) of those who jointly own the property with you?

Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Who will be responsible for the costs of the Transfer of Equity?

Please provide a copy of your National Insurance Number?

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

General Advice to read in further to 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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 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 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 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