Ulster Bank transfer of equity: q and a’s

• Is it possible to transfer the equity held in my property with my Ulster Bank home loan?
• Law month I separated from my partner of 18 years. I'm now back with my mum and dad and she wants to stay in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the Ulster Bank home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
• Given that we have been three years separated I have made the decision to give up my interest in our property to my husband who is re-mortgaging with Ulster Bank. Could this transfer of equity be completed in less than one month?
• My partner and I jointly own a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. Assuming Ulster Bank are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• Will I have to pay any fees for a Transfer of Equity where the current home loan is with Ulster Bank?
• My decree absolute is through as is the consent order. Now I must address the transfer of equity at the land registry and the Ulster Bank mortgage. I have called Ulster Bank for the transfer of equity forms. What are my next steps?
• I got my Decree Absolute in 2011. For some reason I never got around to transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Ulster Bank is willing to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?

Questions that your lawyer could ask about your Ulster Bank Transfer of Equity

Caveats to be read in in addition to the above Ulster Bank transfer of equity Questions and Answers :

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 premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in 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 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 lawyer 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 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 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.