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Common questions relating to Tesco Bank transfer of equity

  • Is it sensible to cancel my mortgage payments with Tesco Bank as soon as a date for my remortgage and transfer of equity has been agreed?
  • Law week I separated from my partner of thirty years. I'm now back with my mum and dad and she wishes to stay in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Tesco Bank? I assume proper valuations are required but I really need ensure that I'm getting I am not being walked over
  • My brother and I got a joint mortgage with Tesco Bank on a house a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Is there likely to be any issue with Tesco Bank with him being responsible for the total mortgage rather than only part of it?
  • I already have a home loan with Tesco Bank and am keeping my existing mortgaging but seeking to have it in my name alone so my former wife will come off the mortgage. How long do Tesco Bank take to deal with the application?
  • I got divorced in 2012. For some reason I never dealt with the transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Tesco Bank is happy to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
  • My former husband are seeking to get a conveyancer in place for a new mortgage with Tesco Bank. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. How necessary is it to have a conveyancing solicitor local to us?
  • What if my application doesn't meet Tesco Bank lending criteria for a transfer of equity?

Sample of information requested in a conveyancer form relating to Tesco Bank Transfer of Equity

Please provide a copy of your National Insurance Number?

Is it the case that one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please give the details of anyone to be extracted from the property title?

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

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

Information to consider in in addition to 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 properties

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 landlord. If such restrictions 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 is dependent on the market value of the property at the conclusion 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 lawyer 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