State Bank of India UK transfer of equity example support desk enquires
- Me and a friend got a joint mortgage with State Bank of India UK on a property in 2013. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential problem with State Bank of India UK with him being responsible for the total loan as opposed to only half of it?
- What are my options where I am not happy with the conveyancer who handled our transfer of equity conveyancing?
- I am disposing of my equity in flat in Warwick to my co-owners fiance, they are sticking with State Bank of India UK being the the existing lender. We are in heated discussion as to who must cover the charges for the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
- I own a property in Heathfield
, with a State Bank of India UK loan with my ex partner. He and his new partner are going to buy me out. We had approval from State Bank of India UK to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for State Bank of India UK (apparently). In order to save fees can I deal with the Land Registry change?
- Can you tell me how to have a person removed from the deeds to a property if the mortgage is with State Bank of India UK
- State Bank of India UK have just agreed I can take over the mortgage on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- At what point do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is taking place at the same time as a refinancing via State Bank of India UK?
Information that may be required from your conveyancing solicitor may ask about your State Bank of India UK Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has one of the registered owners passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide a copy of your National Insurance Number?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Is the transfer of equity subject to a court order? If yes please supply a copy
Caveats to be read in supporting the above State Bank of India UK 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 State Bank of India UK 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 the lease. This could potentially result in the freeholder taking enforcement action against you.
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 conveyancing solicitor will check with State Bank of India UK 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 State Bank of India UK 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with State Bank of India UK.
Preparing the Transfer of Equity with a State Bank of India UK 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 State Bank of India UK 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 does not constitute 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.