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Tesco Bank

Recently asked questions relating to Tesco Bank transfer of equity

  • I am am in need of a conveyancing solicitor to undertake my transfer of equity. Tesco Bank have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
  • Been looking at consumer forums that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Tesco Bank
  • My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity at the HMLR and the Tesco Bank home loan. I have called Tesco Bank for the transfer of equity application. What happens next?
  • My Tesco Bank home loan we jointly entered into with ex, who has agreed to come off the deeds and put the house in my name alone. Tesco Bank will permit the transfer of equity to my individual name. Do Tesco Bank call my employer to verify my salary?
  • I plan to remortgage my apartment in Heathfield moving from Yorkshire Bank Home Loans to Tesco Bank. The apartment is currently in joint names but propose for it to be in my sole name as and when I transfer. My wife is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • Three years ago I purchased a flat without my partner's name on the deeds. My conveyancing solicitor said it is because she was not in the loan offer with Tesco Bank. I'm wondering is there any way that I can put her name on the documents at HMLR?
  • I already have a mortgage with Tesco Bank and am retaining my current mortgaging but applying to have have the equity transferred to my name only so my ex will be removed from the deeds. How long can it take for the paperwork to be processed?

Sample of questions in a conveyancer questionnaire concerning a Tesco Bank Transfer of Equity

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Where you are going to hold 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 give the name(s) and addresse(s) of anyone to be extracted from the property title?

Can you provide the details of those who jointly own the premises with you?

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

Caveats to be read in supporting the above Tesco Bank transfer of equity Info :

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 Tesco Bank 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 have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 conveyancing solicitor 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 varies based on the valuation 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 Tesco Bank.

Preparing the Transfer of Equity with a Tesco Bank 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to Tesco Bank transfer of equity