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Questions and answers: Tesco Bank transfer of equity

  • My ex are seeking to get a lawyer in place for a refinance with Tesco Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over England and Wales. Do we need to have a conveyancing solicitor local to us?
  • Law month I separated from my wife of 18 years. I'm now back with my parents again and she wants to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after paying off the mortgage with Tesco Bank? I assume proper valuations are required but I would like to be sure that I'm getting the best deal
  • I am thinking of remortgaging my property in Winchelsea does my lawyer need to be on the Tesco Bank Solicitor panel. The conveyancing also involves a transfer of equity.
  • At what point do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is happening at the same time as a remortgage with Tesco Bank?
  • Is it sensible to stop the direct debit for my mortgage with Tesco Bank once a date for my remortgage and transfer of equity has been agreed?
  • My fiance and myself equally own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to mitigate tax on the letting income. If Tesco Bank are happy with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
  • My mortgage broker has recommended their conveyancer for our Transfer of Equity plus remortgage with Tesco Bank - won’t it be easier to just instruct them?

Information that may be required from your lawyer could ask regarding your Tesco Bank Transfer of Equity

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

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please provide the name(s) and addresse(s) of those who jointly own the premises with you?

Have you approached Tesco Bank to obtain consent to the Transfer of Equity

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

Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Important warnings to consider in supporting the above Tesco Bank transfer of equity information :

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 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 freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 finalisation 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 lawyer 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 lawyer 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 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.


Frequently asked questions relating to Tesco Bank transfer of equity