Frequently asked questions relating to State Bank of India UK transfer of equity

• My dad passed away last May leaving a unencumbered semi to me and my half brother 50:50. Having continues to reside at the property, there was a provision in the will saying the propertycould not be sold for 24 months after her death so he could reside there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my State Bank of India UK mortgage account?
• My State Bank of India UK home loan is in joint names with ex, who is agreeable to be removed and let me have the property. State Bank of India UK will permit the transfer of equity to me solely. Do State Bank of India UK contact my company to confirm my salary?
• Law month I separated from my wife of 18 years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage do I get. Is it 50% of the equity after discharging the State Bank of India UK home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being walked over
• Me and a friend got a joint mortgage with State Bank of India UK on a flat a couple of years ago. I am now looking to get a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Would there be any potential concerns with State Bank of India UK with him being solely liable for the total loan rather than only part of it?
• I got my Decree Absolute four years ago. Foolishly I never got around to transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. State Bank of India UK is willing to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
• Can I transfer the equity held in my property with my State Bank of India UK home loan?

Questions that your conveyancer may ask regarding your State Bank of India UK Transfer of Equity

Caveats to be read in in addition to the above State Bank of India UK 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 State Bank of India UK conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.

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.

Information provided 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.