Top seven questions relating to Ulster Bank transfer of equity
- My wife and myself equally own a investment property. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name in order mitigate tax on the letting income. If Ulster Bank are content with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
- When it comes to transfer of equity conveyancing involving a remortgage with Ulster Bank should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am planning on removing a name from a joint mortgage and the Ulster Bank need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet
conveyancing solicitor to deal with the transfer of equity? They need to be on the Ulster Bank conveyancing panel.
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Ulster Bank?
- Law month I split up with my wife of thirty years. I'm now back with my parents again and she wishes to stay in the property and buy me out. What percentage do I get. Is it half of the equity after paying off the mortgage with Ulster Bank? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- Is it sensible to stop my mortgage payments with Ulster Bank once a date for my remortgage and transfer of equity has been agreed?
- My Ulster Bank mortgage we jointly entered into with ex, who is agreeable to come off the deeds and put the house in my name alone. Ulster Bank will permit the transfer of equity to me solely. Do Ulster Bank call my boss to verify my salary?
Sample of information requested in a conveyancing solicitor form relating to Ulster Bank Transfer of Equity
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Ulster Bank to the proposed transfer of equity?
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of those who jointly own the property with you?
General Advice to read in conjunction with the above Ulster Bank transfer of equity Info :
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 properties
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 conveyancer 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 conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Ulster Bank your property may be repossessed.
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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.