Recently asked questions relating to Tesco Bank transfer of equity

• Me and a friend got a joint mortgage with Tesco Bank on a apartment a couple of years ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any concerns with Tesco Bank with him being responsible for the total mortgage as opposed to only half of it?
• I am planning on removing a name from a joint mortgage and the Tesco Bank require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Sedgefield conveyancer to deal with the transfer of equity? They need to be on the Tesco Bank conveyancing panel.
• Can I apply to request a further advance from Tesco Bank as part of a Transfer of Equity?
• What if my application doesn't meet Tesco Bank lending criteria for a transfer of equity?
• What are the average legal costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Tesco Bank - and have been quoted £350 plus VAT by Tesco Bank's appointed lawyer, Have I been over quoted?
• My dad passed away early last year leaving a unencumbered house to me and my brother in equal shared. Having continues to reside at the house, there was a clause in the will saying the propertycould not be sold for 2 years after her death so he could remain there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to buy my equity?
• Have recently separated from my partner of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage do I get. Is it half of the equity after discharging the Tesco Bank home loan? I assume proper valuations are required but I would like ensure that I'm getting the best deal

Examples of questions in a lawyer questionnaire concerning a Tesco Bank Transfer of Equity

General Advice to read in supporting the above Tesco Bank transfer of equity information :

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 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 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.

Preparing the Transfer of Equity with a Tesco Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.