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Top seven questions relating to Tesco Bank transfer of equity

  • My dad died early last year leaving a loan-free house to me and my brother equally. Having continues to reside at the property, there was a clause in her will specifying that the propertycould not be sold for 24 months after her death so he could remain there for a while. He now wishes to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my equity?
  • What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Tesco Bank mortgage account?
  • I co-own a flat in Wakefield , with a Tesco Bank loan with my former husband. He and his fiance are going to acquire my share. We had the go ahead from Tesco Bank to remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Tesco Bank (supposedly). In order to save fees can I do the Land Registry formalities?
  • At what stage do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my sole name which is happening at the same time as a switching mortgage with Tesco Bank?
  • I currently have a joint Tesco Bank mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Tesco Bank?
  • My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity at the land registry and the Tesco Bank mortgage. I have called Tesco Bank for the transfer of equity forms. What do I do now?

Examples of questions in a conveyancer form concerning a Tesco Bank Transfer of Equity

Please provide a copy of your National Insurance Number?

Where you 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?

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

Can you give the name(s) and addresse(s) of those who jointly own the premises with you?

Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?

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

Important warnings to consider in further to the above Tesco Bank transfer of equity Advice :

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

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 varies based on the valuation 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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to Tesco Bank transfer of equity