Common questions relating to State Bank of India UK transfer of equity
- My former wife are planning to get a conveyancer lined up for a new mortgage with State Bank of India UK. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. How necessary is it to have a lawyer local to us?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with State Bank of India UK?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with State Bank of India UK?
- My brother and I got a joint mortgage with State Bank of India UK on a house a couple of years ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential concerns with State Bank of India UK with him being responsible for the total loan rather than only part of it?
- I am planning on removing a name from a joint mortgage and the State Bank of India UK require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Miles Platting
lawyer to deal with the transfer of equity? They need to be on the State Bank of India UK conveyancing panel.
- I already have a home loan with State Bank of India UK and am keeping my existing mortgaging but seeking to have have the equity transferred to my name only so my ex won't be on it any longer. How long can it take for the application to be processed?
- Is it sensible to cancel the direct debit for my mortgage with State Bank of India UK as soon as a date for my remortgage and transfer of equity has been agreed?
Sample of questions in a conveyancer form relating to State Bank of India UK Transfer of Equity
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?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please provide the details of anyone to be extracted from the property title?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please confirm if you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?
Has consent been obtained from State Bank of India UK to the proposed transfer of equity?
Caveats to be read in in addition to the above State Bank of India UK transfer of equity Questions and Answers :
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 titles
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 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 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 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 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 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.