Top seven questions relating to Ulster Bank transfer of equity

• I am planning on removing a name from a joint mortgage and the Ulster Bank require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Timperley lawyer to deal with the transfer of equity? They need to be on the Ulster Bank conveyancing panel.
• Is it sensible to cancel my mortgage payments with Ulster Bank once a date for my remortgage and transfer of equity has been set?
• I am searching for a quality conveyancing solicitor to assist in a transfer of equity and remortgage with Ulster Bank. I really don't want to get ripped off but with lots of conveyancing organisations who do transfer of equity conveyancing to pick from...who's the best?
• Having been 5 years apart I have decided to relinquish up my interest in the flat to my husband who is refinancing with Ulster Bank. Could this transfer of equity be completed inside one month?
• How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Ulster Bank - and have been quoted £350 excluding VAT by Ulster Bank's approved conveyancing solicitor, Have I been over quoted?
• Can I transfer the equity held in my property with my Ulster Bank home loan?
• I am selling my share of a property in Warwick to the other co-owners fiance, they are sticking with Ulster Bank being the the existing mortgage company. We are in heated discussion as to who should cover the costs of the transfer of equity. Should this be shared or is one party obliged to cover the legal bill?

Information that may be required from your lawyer is likely to ask in relation to your Ulster Bank Transfer of Equity

Information to consider in supporting the above Ulster Bank transfer of equity information :

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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 pursuant to 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 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 is dependent on the market value of the property at the conclusion 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 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 lawyer 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.