Ulster Bank transfer of equity: q and a’s
- I am disposing of my equity in apartment in Birmingham to the other co-owners fiance, they are sticking with Ulster Bank being the the existing mortgage company. We are debating as to who must pay the costs of the transfer of equity. Is this normally split or is one party obliged to cover the fees for?
- My Ulster Bank home loan is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Ulster Bank have consented to the transfer of equity to me solely. Do Ulster Bank call my employer to verify my salary?
- I am hoping to refinance my flat in Friern Barnet
switching from Halifax to Ulster Bank. The flat is currently in joint names but I would like it to be in my name only once I remortgage. My former partner has agreed to this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- I bought a property with a friend in 2010 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Ulster Bank mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- Do I need legal representation when doing a transfer of equity where the home loan is to remain with Ulster Bank?
- What are the average solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Ulster Bank - and have been quoted £350 including VAT by Ulster Bank's appointed conveyancer, Is this a reasonable price?
- My -ex-husband and I are searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Ulster Bank. I am aware of the possibility of getting ripped off and there are so many conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
Questions that your lawyer could ask about your Ulster Bank Transfer of Equity
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Is the transfer of equity subject to a court order? If yes please supply a copy
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 inform us if you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Please give the details of those who jointly own the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Information to consider in conjunction with the above Ulster Bank transfer of equity information :
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 titles
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under 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 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 is dependent on the valuation of the property at the time of completion 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 conveyancing solicitor 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 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.