Top seven questions relating to State Bank of India UK transfer of equity
- State Bank of India UK yesterday agreed I can take over the home loan on the house. I had applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
- I am hoping to refinance my flat in Rye
switching from Godiva Mortgages to State Bank of India UK. The apartment is currently in joint names but intend for it to be in my name only as and when I remortgage. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.
- What are the average solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - new loan with State Bank of India UK - and have been quoted £350 excluding VAT by State Bank of India UK's appointed lawyer, Have I been over quoted?
- Can I apply to request more money from State Bank of India UK as part of a Transfer of Equity?
- I got my Decree Absolute in 2011. Foolishly I never dealt with the transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. 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 solicitor?
- Me and a friend got a joint mortgage with State Bank of India UK on a house about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Would there be any potential issue with State Bank of India UK with him being on the hook for the total loan as opposed to only part of it?
- My current mortgage is with State Bank of India UK. Can I transfer equity to someone under 18 years old?
Questions that your conveyancer may ask regarding your State Bank of India UK Transfer of Equity
Please give the details of anyone to be added to the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Have you approached State Bank of India UK to obtain consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
General Advice to read in further to the above State Bank of India UK transfer of equity Info :
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 properties
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 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 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 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.