Ulster Bank transfer of equity example support desk enquires

• At what point do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is taking place at the same time as a refinancing via Ulster Bank?
• I already have a home loan with Ulster Bank and am retaining my existing mortgaging but applying to have have the equity transferred to my name alone so my former wife will be removed from the mortgage. How long does the whole transfer of equity process take?
• As things stand I have a joint Ulster Bank mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my fiance. The outstanding mortgage is in the region 175k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
• My divorce is through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Ulster Bank mortgage. I have asked Ulster Bank for the transfer of equity forms. What happens next?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Ulster Bank mortgage account?
• Am I best advised cancel the direct debit for my mortgage with Ulster Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• I am disposing of my equity in apartment in Birmingham to the other co-owners husband, they are reapplying to Ulster Bank. We are haggling as to who should pay the legal bill for the transfer of equity. Should this be split or is one of us obliged to cover the fees for?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your Ulster Bank Transfer of Equity

General Advice to read in in addition to the above Ulster Bank transfer of equity Questions and Answers :

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 Ulster Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions 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 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.

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 lawyer 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 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.