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Top seven questions relating to Ulster Bank transfer of equity

  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Ulster Bank?
  • I am completing a Ulster Bank transfer of equity form and have arrived at the section regarding defaults etc. There are some debts that I have been reducing for a number of years, in fact they no longer remain my credit records. Am I obliged to reveal these?
  • My mum died seven months ago leaving a loan-free bungalow to me and my step brother in equal shared. Having continues to reside at the property, there was a clause in the will specifying that the housecould not be sold for 2 years after her passing so he could reside there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to buy my half from me?
  • My decree absolute is through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Ulster Bank mortgage. I have called Ulster Bank for the transfer of equity application. What are my next steps?
  • I plan to remortgage my maisonette in Dunnington moving from Godiva Mortgages to Ulster Bank. The apartment is jointly owned but intend for it to be in my sole name as and when I transfer. My husband has verbally consented to this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
  • My partner and I jointly own a house in Dunnington . Home loan is with Ulster Bank. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be straightforward?

Information that may be required from your conveyancer may ask in relation to your Ulster Bank Transfer of Equity

Please clarify where you are making any payment for the Transfer of Equity and to whom and specify the amount?

Have you approached Ulster Bank to seek consent to the Transfer of Equity

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Who will be responsible for the costs of the Transfer of Equity?

Information to consider in conjunction with 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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation 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 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 market value of the property at the conclusion 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 conveyancer 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 conveyancing solicitor 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.


Frequently asked questions relating to Ulster Bank transfer of equity