Examples of recent questions relating to Tesco Bank transfer of equity
- Me and a friend got a joint mortgage with Tesco Bank on a property in 2013. I am now looking to get a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any issue with Tesco Bank with him being responsible for the total mortgage rather than only half of it?
- I am completing a Tesco Bank transfer of equity application and have arrived at the questions that asks about defaults etc. I do some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Am I obliged to set these out?
- I already have a mortgage with Tesco Bank and am keeping my existing mortgaging but wish to have have the equity transferred to my name alone so my former partner will be removed from the deeds. How long can it take for the forms to be processed?
- Taking into account that we have been a number of years separated I have made the decision to give up my interest in the property to my husband who is refinancing with Tesco Bank. Could this transfer of equity be completed inside one month?
- I am transferring my equity in house in Hendon to my co-owners fiance, they are reapplying to Tesco Bank. We are haggling as to who should pay the charges for the transfer of equity. Should this be split or is one of us liable for the costs of?
- My mum died last January leaving a unencumbered house to me and my step brother in equal shared. Having continues to reside at the premises, there was a condition in the will saying the propertycould not be sold for 24 months after her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to buy my half from me?
- When it comes to transfer of equity conveyancing involving a remortgage with Tesco Bank should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Questions that your lawyer may ask about your Tesco Bank Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
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 confirm where you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
Have you approached Tesco Bank to seek consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in further 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 titles
Should the tenure of your property be leasehold, 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 breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 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 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.
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.