Common questions relating to Ulster Bank transfer of equity
- My wife and I have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name to mitigate tax on the letting income. Assuming Ulster Bank are content with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
- Can you tell me how to have someone removed off the deeds to a property if the home loan is with Ulster Bank
- My mother passed away early last year leaving a mortgage-free bungalow to me and my step brother in equal shared. He has always lived in the property, there was a clause in the will saying the housecould not be sold for 24 months after her death so he could remain there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to purchase my half from me?
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Ulster Bank mortgage account?
- My current mortgage is with Ulster Bank. Can I transfer equity to someone who is not yet 18 years old?
- My divorce has gone through as is the consent order. Now I have to address the transfer of equity for the property and the Ulster Bank mortgage. I have called Ulster Bank for the transfer of equity application. What are my next steps?
- Have recently separated from my partner of thirty years. I'm now living with my mum and dad and she wants to stay in the apartment and buy me out. What percentage do I get. Is it half of the equity after paying off the Ulster Bank home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
Questions that your conveyancer may ask in relation to your Ulster Bank Transfer of Equity
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please let us know where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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?
Is it the case that one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider 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 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 freeholder. If such terms are not adhered to 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 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 market value of the property at the time of completion of the transfer of equity transaction.
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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.