Examples of recent questions relating to State Bank of India UK transfer of equity
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with State Bank of India UK?
- I own a house in Timperley
, with a State Bank of India UK loan with my former partner. Him and his fiance are going to acquire my share. We had consent from State Bank of India UK to remove my name with hers. The transfer of equity needs to be done by a lawyer for State Bank of India UK (apparently). Is it possible for us to do the Land Registry formalities?
- My partner and I jointly own a property in Sedgefield
. Mortgage is with State Bank of India UK. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be straightforward?
- As things stand I have a joint State Bank of India UK mortgage with my cousin and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is in the region 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
- I got divorced three years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. State Bank of India UK is happy to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
- What is the process for 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 put the house in my name alone. State Bank of India UK will permit the transfer of equity to my individual name. Do State Bank of India UK write my company to verify my salary?
Examples of information requested in a conveyancer questionnaire relating to State Bank of India UK Transfer of Equity
Is it the case that one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please clarify if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider 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, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 market value 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 conveyancer 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 contained within 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.