Recently asked questions relating to Ulster Bank transfer of equity
- Me and a friend got a joint mortgage with Ulster Bank on a apartment about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential issue with Ulster Bank with him being solely liable for the total mortgage as opposed to only half of it?
- My existing home loan is with Ulster Bank. Can I transfer equity to someone under 18 years old?
- I got my Decree Absolute in 2011. For some reason I never dealt with the transfer ownership from both our names to just in my name. 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 (affordability checks done). Does she need any legal representation?
- Taking into account that we have been a number of years separated I have made the decision to transfer my share of our flat to my husband who is refinancing with Ulster Bank. Could this transfer of equity be completed within 28 days?
- I am disposing of my equity in flat in Birmingham to the other co-owners fiance, they are reapplying to Ulster Bank. We are haggling as to who should cover the charges for the transfer of equity. Should this be split or is one of us liable for the charges for?
- My partner and I equally own a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name to reduce our tax on rental income. Assuming Ulster Bank are happy with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
- I already have a home loan with Ulster Bank and am retaining my current mortgaging but seeking to have it in my sole name so my ex won't be on it any longer. How long can it take for the forms to be processed?
Sample of information requested in a lawyer questionnaire relating to Ulster Bank Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Information to consider in further to 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
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
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 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 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.