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Tesco Bank

Recently asked questions relating to Tesco Bank transfer of equity

  • Can I apply to borrow a further advance from Tesco Bank as part of a Transfer of Equity?
  • My former husband are looking to get a lawyer lined up for a refinance with Tesco Bank. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. Is it important to appoint a conveyancer local to us?
  • I currently have a joint Tesco Bank mortgage with my brother and am looking into the option of him taking on the whole mortgage and extracting myself from it, to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
  • What if my application doesn't meet Tesco Bank lending criteria for a transfer of equity?
  • My fiance and myself jointly own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name to reduce our tax on the letting income. Assuming Tesco Bank are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
  • My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Tesco Bank mortgage. I have contacted Tesco Bank for the transfer of equity forms. What do I do now?
  • How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Tesco Bank - and have been quoted £350 including VAT by Tesco Bank's approved conveyancing solicitor, Is this is a good price or not?

Sample of questions in a conveyancing solicitor questionnaire concerning a Tesco Bank Transfer of Equity

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

Has one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Please give the details of anyone to be removed from the property title?

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

If 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 let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Information to consider in conjunction with the above Tesco Bank transfer of equity Info :

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 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 terms are not adhered to you may be in violation 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 conveyancer 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 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 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 provided 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.


Frequently asked questions relating to Tesco Bank transfer of equity