Common questions relating to Ulster Bank transfer of equity

• My mother died half a year ago leaving a unencumbered property to me and my brother in equal shared. Having continues to reside at the property, there was a condition in her will saying the premisescould not be sold for three years following her passing so he could remain there for a while. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to acquire my equity?
• Is there such a thing a transfer of equity stamp duty calculator?
• Is it possible to transfer the equity held in my property with my Ulster Bank mortgage?
• I jointly own a apartment in Blaenavon , with a Ulster Bank mortgage with my former husband. Him and his new partner are going to acquire my share. We had the go ahead from Ulster Bank to replace my name with hers. The transfer of equity has to be done by a for Ulster Bank (apparently). In order to save fees can I do the Land Registry formalities?
• I am thinking of remortgaging my property in Blaenavon does my lawyer have to be on the Ulster Bank Solicitor panel. The conveyancing also involves a transfer of equity.
• I currently have a joint Ulster Bank mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is about 200k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty due?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Ulster Bank?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Ulster Bank Transfer of Equity

Caveats to be read in in addition to the above Ulster Bank transfer of equity information :

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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of 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 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 time of completion 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 lawyer 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 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.