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Are you in need of a Transfer of Equity with a Tesco Bank (a trading name of Tesco Personal Finance plc) mortgage? Failing to check that a lawyer is on the Tesco Bank (a trading name of Tesco Personal Finance plc) list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Top seven questions relating to Tesco Bank transfer of equity

  • My existing mortgage is with Tesco Bank. Can I transfer equity to someone less than 18 years old?
  • What are my options where I am unhappy with the lawyer who carried out our transfer of equity transaction?
  • I already have a mortgage with Tesco Bank and am maintaining my existing mortgaging but wish to have it in my name only so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
  • Will I incur any charges for a Transfer of Equity where the current home loan is with Tesco Bank?
  • Me and a friend got a joint mortgage with Tesco Bank on a flat a couple of years ago. I am now looking to get a flat on my own and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any issue with Tesco Bank with him being solely liable for the total loan as opposed to only half of it?
  • Law week I separated from my partner of twenty years. I'm now back with my parents again and she wishes to stay in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the Tesco Bank home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?

Information that may be required from your lawyer is likely to ask regarding your Tesco Bank Transfer of Equity

Please provide the details of anyone to be added to the property title?

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 provide the details of anyone who jointly owns the premises with you?

Please list all persons who occupy the property, their respective ages and relationships to you.

Has consent been obtained from Tesco Bank to the proposed transfer of equity?

Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Caveats to be read in in addition to 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 properties

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions 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 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 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 varies based on the market value of the property at finalisation 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 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 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