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Tesco Bank

Recently asked questions relating to Tesco Bank transfer of equity

  • After 3 years estranged I have opted to relinquish up my share of our property to my husband who is re-mortgaging with Tesco Bank. Could this transfer of equity be completed inside four weeks?
  • I am am in need of a lawyer to undertake my transfer of equity. Tesco Bank have been approached for a refinancing. I considered asking my financial adviser. I understand he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
  • I intend to remortgage my home in Witham moving from Coventry BS to Tesco Bank. The flat is jointly owned but wish for it to be in my sole name when I remortgage. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer charges.
  • Tesco Bank yesterday agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the house in addition?
  • Is it sensible to cancel the direct debit for my mortgage with Tesco Bank once a date for my remortgage and transfer of equity has been set?
  • My partner and I jointly own a house in Crabtree . Mortgage is with Tesco Bank. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?
  • I am thinking of remortgaging my house in Heathfield does my lawyer need to be on the Tesco Bank Conveyancing panel. The conveyancing also involves a transfer of equity.

Questions that your conveyancer is likely to ask regarding your Tesco Bank Transfer of Equity

Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Who will be responsible for the costs of the Transfer of Equity?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Can you give the details of those who jointly own the property with you?

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?

Caveats to be read in supplemental the above Tesco Bank transfer of equity Advice :

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 Tesco Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in 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 conditions are not complied with you may be in breach of the lease. This could trigger 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 lawyer will check with Tesco Bank 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 Tesco Bank 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 Tesco Bank your property may be repossessed.

Preparing the Transfer of Equity with a Tesco Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Tesco Bank 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information contained within 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.


Frequently asked questions relating to Tesco Bank transfer of equity