Yorkshire Bank transfer of equity: q and a’s
- I currently have a joint Yorkshire Bank mortgage with my step-brother and am investigating the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is approx 500k. Is this a transfer of equity? Is land tax due?
- What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Yorkshire Bank - and have been quoted £250 including VAT by Yorkshire Bank's approved lawyer, Is this a reasonable price?
- How and when do I pay stamp duty chargeable for the transfer of equity in my home in my name alone which is happening at the same time as a switching mortgage via Yorkshire Bank?
- My existing home loan is with Yorkshire Bank. Can I transfer equity to someone who is not yet eighteen years old?
- My Yorkshire Bank home loan is in joint names with ex, who is agreeable to come off the deeds and put the house in my name alone. Yorkshire Bank have consented to the transfer of equity to my individual name. Do Yorkshire Bank call my boss to verify my salary?
- Me and a friend got a joint mortgage with Yorkshire Bank on a apartment in 2013. I am now looking to get a house 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 concerns with Yorkshire Bank with him being responsible for the total mortgage as opposed to only part of it?
- I am thinking of mortgaging my flat in Romsey
does my lawyer have to be on the Yorkshire Bank Solicitor panel. The conveyancing also involves a transfer of equity.
Sample of information requested in a conveyancing solicitor questionnaire concerning a Yorkshire Bank Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Have you approached Yorkshire Bank to seek consent to the Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
If you are adding a person 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” Form.
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supporting the above Yorkshire Bank transfer of equity Questions and Answers :
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 Yorkshire Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 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 conveyancing solicitor will check with Yorkshire 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 Yorkshire 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 valuation 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 Yorkshire Bank.
Preparing the Transfer of Equity with a Yorkshire 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 Yorkshire 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.