Recently asked questions relating to Tesco Bank transfer of equity
- I am trying to find a conveyancing solicitor to undertake my transfer of equity. Tesco Bank are dealing with the refinancing. I considered asking my financial adviser. I understand he may receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
- Me and a friend got a joint mortgage with Tesco Bank on a property a couple of years ago. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any problem with Tesco Bank with him being on the hook for the total mortgage as opposed to only part of it?
- Given that we have been 2 a couple of years separated I have opted to transfer my share of our property to my husband who is re-mortgaging with Tesco Bank. Could this transfer of equity be done inside four weeks?
- How and when do I pay stamp duty payable for the transfer of equity in my house in my name alone which is happening at the same time as a switching mortgage with Tesco Bank?
- My ex are seeking to get a conveyancer lined up for a new mortgage with Tesco Bank. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
- My father passed away early last year leaving a unencumbered semi to me and my step brother in equal shared. He has always lived in the house, there was a clause in her will saying the premisescould not be sold for 24 months following her passing so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to purchase my share?
- I am filling out a Tesco Bank transfer of equity form and have come to the questions concerning defaults etc. There are some debts that I have been discharging over a long period, I understand that they no longer remain my credit records. Am I obliged to disclose these?
Information that may be required from your lawyer is likely to ask regarding your Tesco Bank 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)?
Has consent been obtained from Tesco Bank to the proposed transfer of equity?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please provide a copy of your National Insurance Number?
Please list all persons who occupy the property, their respective ages and relationships to you.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Caveats to be read in supporting 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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in 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 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 conveyancing solicitor 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 valuation of the property at finalisation 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 lawyer 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 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.