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Ulster Bank transfer of equity: q and a’s

  • I am am in need of a lawyer to deal with my transfer of equity. Ulster Bank have been approached for a remortgage. I thought of asking my financial adviser. I understand he may receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic flawed?
  • I am completing a Ulster Bank transfer of equity request and have come to the part that asks about debts etc. I do some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Must I disclose these?
  • My current home loan is with Ulster Bank. Can I transfer equity to someone less than 18 years old?
  • My financial adviser has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Ulster Bank - Is it not simpler advisable to just use them?
  • Is it sensible to cancel my mortgage payments with Ulster Bank once a date for my remortgage and transfer of equity has been agreed?
  • I am hoping to remortgage my flat in Wakefield switching from Yorkshire Bank Home Loans to Ulster Bank. The apartment is jointly owned but propose for it to be in my sole name as and when I transfer. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancer involved.
  • Is it possible to apply to borrow more money from Ulster Bank as part of a Transfer of Equity?

Sample of questions in a lawyer questionnaire concerning a Ulster Bank Transfer of Equity

Has consent been obtained from Ulster Bank to the proposed transfer of equity?

Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please provide the details of anyone to be added to the title deeds?

Information to consider in supplemental 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 premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in 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 conveyancing solicitor 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 finalisation of the transfer of equity conveyancing.
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 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.


Frequently asked questions relating to Ulster Bank transfer of equity