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Common questions relating to Tesco Bank transfer of equity

  • Can I transfer the equity held in my property with my Tesco Bank mortgage?
  • What if my application doesn't meet Tesco Bank lending criteria for a transfer of equity?
  • My mum passed away early last year leaving a mortgage-free house to me and my step brother 50:50. Having continues to reside at the premises, there was a clause in the will specifying that the premisescould not be sold for 2 years after her death so he could reside there for a specified time frame. He now says he would like to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my share?
  • Law month I separated from my partner of thirty years. I'm now back with my mum and dad and she wants to stay in the flat and pay me off. What percentage do I get. Is it 50% of the equity after paying off the Tesco Bank home loan? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being walked over
  • I am am in need of a conveyancer to handle my transfer of equity. Tesco Bank are dealing with the refinancing. I thought of asking my financial adviser. I understand he may receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
  • How much the typical legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Tesco Bank - and have been quoted Three Hundred pounds including VAT by Tesco Bank's approved lawyer, Have I been over quoted?
  • How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my house in my sole name which is happening simultaneously with a refinancing with Tesco Bank?

Examples of questions in a lawyer form relating to Tesco Bank Transfer of Equity

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

Please inform us if you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

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

Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Has one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Important warnings to consider in conjunction with 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 titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 pursuant to 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 is dependent on the market value of the property at the time of completion 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 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 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