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

• 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?
• I already have a mortgage with State Bank of India UK and am retaining my current mortgaging but applying to have it in my name alone so my former wife will be removed from the title. How long can it take for the paperwork to be processed?
• My wife and myself have equal shares in a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name to reduce our tax on the letting income. Assuming State Bank of India UK are content with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
• I am filling out a State Bank of India UK transfer of equity application and have come to the questions concerning debts etc. I do some debts that I have been paying off since 2007, I understand that they no longer remain my credit score. Must I set these out?
• I am thinking of mortgaging my house in Ampthill does my lawyer need to be on the State Bank of India UK Solicitor panel. The conveyancing also involves a transfer of equity.
• State Bank of India UK have today agreed I can take over the home loan on the flat. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
• My divorce is through as is the consent order. Now I must sort out the transfer of equity on title deeds and the State Bank of India UK mortgage. I have called State Bank of India UK for the transfer of equity application. What are my next steps?

Questions that your conveyancing solicitor is likely to ask regarding your State Bank of India UK Transfer of Equity

Information to consider in conjunction with the above State Bank of India UK transfer of equity information :

Tax and Legal

There may be various 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 premises

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of 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 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 conveyancer 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 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 conveyancing solicitor 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 lawyer 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.