Common questions relating to Yorkshire Bank transfer of equity
- I am filling out a Yorkshire Bank transfer of equity application and have arrived at the questions regarding debts etc. There are some debts that I have been clearing since 2009, in fact they no longer remain my credit records. Am I obliged to disclose these?
- I am planning on removing a name from a joint mortgage and the Yorkshire Bank need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Winchelsea
conveyancer to deal with the transfer of equity? They need to be on the Yorkshire Bank conveyancing panel.
- My mother passed away half a year ago leaving a unencumbered semi to me and my brother 50:50. He has always lived in the property, there was a clause in her will saying the premisescould not be sold for three years after her death so he could reside there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to buy my half from me?
- Me and my partner jointly own a property in Winchelsea
. Mortgage is with Yorkshire Bank. I want to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be simple?
- I already have a mortgage with Yorkshire Bank and am keeping my existing mortgaging but seeking to have it in my sole name so my ex won't be on it any longer. How long do Yorkshire Bank take to process the application?
- I recently bought a house without my fiance’s name on the deeds. My lawyer claimed it is due to the fact that she was not in the mortgage with Yorkshire Bank. I'm wondering is there any way that I can put her name on the documents at HMLR?
- Do I need legal representation when doing a transfer of equity where the home loan is to remain with Yorkshire Bank?
Questions that your conveyancer could ask regarding your Yorkshire Bank Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is it the case that one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please give the details of anyone to be removed from the property title?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supplemental the above Yorkshire Bank transfer of equity Info :
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 Yorkshire Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under 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 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Yorkshire Bank your property may be repossessed.
Preparing the Transfer of Equity with a Yorkshire 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 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.