Top seven questions relating to State Bank of India UK transfer of equity
- I am filling out a State Bank of India UK transfer of equity form and have come to the section that asks about defaults etc. I do some debts that I have been paying off over a long period, in fact they no longer remain my credit score. Am I obliged to reveal these?
- Do I need legal representation when doing a transfer of equity where the home loan is to remain with State Bank of India UK?
- I already have a home loan with State Bank of India UK and am maintaining my existing mortgaging but seeking to have have the equity transferred to my name only so my ex will come off the deeds. How long can it take for the application to be processed?
- I currently have a joint State Bank of India UK mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase a property with my partner. The remaining mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
- I bought a flat with my cousin six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the State Bank of India UK mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Can you tell me how to have a person removed from the title documents to a property where the home loan is with State Bank of India UK
- My State Bank of India UK mortgage we jointly entered into 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 my individual name. Will State Bank of India UK write my company to verify my salary?
Questions that your conveyancing solicitor may ask in relation to your State Bank of India UK Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please list all persons who occupy the property, their respective ages and relationships to you.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Please provide a copy of your National Insurance Number?
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?
Information to consider in further to 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
If your property is leasehold, the lease may have a requirement for notices to be served and 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 trigger 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 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 varies based on the market value of the property at the time of completion 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.