Questions and answers: Ulster Bank transfer of equity
- I acquired a house with my brother in 2010 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Ulster Bank mortgage. There is a significant difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
- Ulster Bank have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
- I own a house in Ampthill , with a Ulster Bank loan with my ex husband. Him and his new partner are going to acquire my share. We had consent from Ulster Bank to remove my name with hers. The transfer of equity needs to be done by a lawyer for Ulster Bank (apparently). In order to save fees can I do the Land Registry change?
- I am transferring my equity in flat in Woodside to the other co-owners fiance, they are sticking with Ulster Bank being the the existing mortgage company. We are haggling as to who should cover the charges for the transfer of equity. Is this normally shared or is one party liable for the costs of?
- I am am in need of a conveyancer to undertake my transfer of equity. Ulster Bank are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he may receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- I am filling out a Ulster Bank transfer of equity form and have arrived at the section that asks about debts etc. There are some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit rating. Must I set these out?
- Two years ago I bought a house without my partner's name on the ownership paperwork. My lawyer said it is because she is not in the loan offer with Ulster Bank. Is it possible for me to put her name on the title?
Questions that your lawyer could ask about your Ulster Bank Transfer of Equity
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Is it the case that 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.
Please give the details of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in in addition to the above Ulster 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 Ulster 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 freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 lawyer will check with Ulster 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 Ulster 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 the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Ulster Bank.
Preparing the Transfer of Equity with a Ulster 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 Ulster 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.