Questions and answers: Ulster Bank transfer of equity
- My father passed away half a year ago leaving a unencumbered house to me and my step brother 50:50. He has always lived in the premises, there was a clause in her will saying the propertycould not be sold for three years after her passing so he could continue to live 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?
- I am remortgaging my house in Timperley
does my lawyer need to be on the Ulster Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
- My Ulster Bank mortgage is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. Ulster Bank have consented to the transfer of equity to me solely. Will Ulster Bank get in touch with my company to verify my salary?
- What is the process for adding or subtracting names (transfer of equity) to or from my Ulster Bank mortgage account?
- How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening at the same time as a refinancing with Ulster Bank?
- I am completing a Ulster Bank transfer of equity application and have come to the questions concerning debts etc. There are some debts that I have been clearing for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
- I intend to remortgage my maisonette in Crabtree
changing from HSBC to Ulster Bank. The flat is currently in joint names but I would like it to be in my sole name once I switch. My husband has agreed to this and is willing to sign a form but neither of us want to get a second conveyancer involved.
Questions that your conveyancer may ask in relation to your Ulster Bank Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please list all persons who occupy the property, their respective ages and relationships to you.
Can you provide the details of anyone who jointly owns the premises with you?
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in in addition to the above Ulster Bank transfer of equity Advice :
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 properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
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 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.
Content 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.