LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Tesco Bank

Frequently asked questions relating to Tesco Bank transfer of equity

  • My fiance and myself equally own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Tesco Bank are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • Me and a friend got a joint mortgage with Tesco Bank on a flat about a year ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Is there likely to be any problem with Tesco Bank with him being responsible for the total loan rather than only half of it?
  • How and when do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my sole name which is taking place simultaneously with a switching mortgage with Tesco Bank?
  • What if my application doesn't meet Tesco Bank lending criteria for a transfer of equity?
  • I own a flat in Witham , with a Tesco Bank mortgage with my former partner. Him and his fiance are going to buy me out. We had consent from Tesco Bank to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Tesco Bank (apparently). Can we deal with the Land Registry formalities?
  • What do I do if I am unhappy with the lawyer who carried out our transfer of equity transaction?
  • My partner and I co-own a flat in Littleborough . Mortgage is with Tesco Bank. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?

Examples of information requested in a lawyer questionnaire relating to Tesco Bank Transfer of Equity

Please provide a copy of your National Insurance Number?

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

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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

Important warnings to consider in supplemental 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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 finalisation of the transfer of equity conveyancing.
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 conveyancer 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