Top seven questions relating to State Bank of India UK transfer of equity
- I jointly own a apartment in Timperley
, with a State Bank of India UK loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from State Bank of India UK to remove my name with hers. The transfer of equity has to be completed by a lawyer for State Bank of India UK (supposedly). In order to save fees can I do the Land Registry change?
- I am hoping to refinance my flat in Ampthill switching from Natwest to State Bank of India UK. The home is currently in joint names but intend for it to be in my sole name once I transfer. My husband is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.
- I am in the market for a dependable conveyancing solicitor to assist in a transfer of equity and remortgage with State Bank of India UK. I am aware of the risk of getting ripped off and there's plenty conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
- I am in the process of refinancing my home in Friern Barnet
does my lawyer have to be on the State Bank of India UK Solicitor panel. The conveyancing also involves a transfer of equity.
- Have recently separated from my wife of 18 years. I'm now living with my mum and dad and she wishes to remain in the apartment and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with State Bank of India UK? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- I am selling my share of a property in Birmingham to my co-owners husband, they are sticking with State Bank of India UK as the the existing lender. We are haggling as to who should pay the charges for the transfer of equity. Should this be split or is one party obliged to cover the fees for?
- At what stage do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is taking place at the same time as a switching mortgage with State Bank of India UK?
Sample of questions in a conveyancing solicitor form concerning a State Bank of India UK Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
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?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
General Advice to read in conjunction with 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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 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 lawyer 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 the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with State Bank of India UK your property may be repossessed.
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 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.