Questions and answers: Tesco Bank transfer of equity
- My divorce has gone through as is the consent order. Now I must address the transfer of equity at the land registry and the Tesco Bank mortgage. I have asked Tesco Bank for the transfer of equity application. What happens next?
- My ex-wife and I are are seeking to find a trustworthy conveyancing lawyer to help me sell in a transfer of equity and remortgage with Tesco Bank. I want to avoid being ripped off and there are plenty conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
- Me and a friend got a joint mortgage with Tesco Bank on a apartment in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Would there be any potential concerns with Tesco Bank with him being solely liable for the total mortgage rather than only part of it?
- Law week I separated from my partner of thirty years. I'm now back with my parents again and she wishes to stay in the property and buy me out. What percentage do I get. Is it half of the equity after discharging the mortgage with Tesco Bank? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Tesco Bank?
- At what point do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is taking place at the same time as a switching mortgage via Tesco Bank?
- Tesco Bank yesterday agreed I can take over the home loan on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
Sample of information requested in a lawyer questionnaire concerning a Tesco Bank Transfer of Equity
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the details of anyone to be extracted from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of those who jointly own the property with you?
Caveats to be read in supporting the above Tesco Bank transfer of equity Questions and Answers :
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 breach of 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 varies based 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 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.
Content 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.
