Top seven questions relating to Ulster Bank transfer of equity
- Me and a friend got a joint mortgage with Ulster Bank on a flat in 2013. I am now looking to get a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any issue with Ulster Bank with him being responsible for the total loan as opposed to only part of it?
- When it comes to transfer of equity conveyancing involving a remortgage with Ulster Bank should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Have recently split up with my partner of twenty years. I'm now back with my parents again and she wants to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after discharging the Ulster Bank home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
- My former husband are seeking to get a conveyancing solicitor lined up for a refinance with Ulster Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. How necessary is it to instruct a conveyancing solicitor local to us?
- My current mortgage is with Ulster Bank. Can I transfer equity to someone who is not yet eighteen years old?
- Ulster Bank yesterday agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
- I intend to refinance my apartment in Timperley
switching from Halifax to Ulster Bank. The apartment is jointly owned but propose for it to be in my name only as and when I switch. My wife has verbally consented to this and is willing to sign a form but neither of us want to incur lawyer fees.
Questions that your lawyer may ask about your Ulster Bank Transfer of Equity
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?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Ulster Bank to the proposed 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?
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 properties
If your property is leasehold, provisions in 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 violation of the lease. This could trigger the freeholder taking enforcement action against you.
Indemnity Insurance
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 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 valuation of the property at the conclusion 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 conveyancer 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.
