Sample questions relating to Yorkshire Bank transfer of equity
- I plan to refinance my flat in Winchelsea
moving from Leeds Building Society to Yorkshire Bank. The home is jointly owned but propose for it to be in my sole name when I transfer. My former partner has agreed to this and is willing to sign a form but neither of us want to get a second lawyer involved.
- My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity on title deeds and the Yorkshire Bank home loan. I have asked Yorkshire Bank for the transfer of equity forms. What happens next?
- As things stand I have a joint Yorkshire Bank mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- My financial adviser has suggested using their conveyancer for our Transfer of Equity plus remortgage with Yorkshire Bank - won’t it be better to just instruct them?
- What can I do where I am unhappy with the lawyer who did our transfer of equity conveyancing?
- I got my Decree Absolute two years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Yorkshire Bank is willing to transfer the full equity in my name (financial checks done). Does my ex need any legal representation?
- I am selling my equity in property in Birmingham to the other co-owners husband, they are reapplying to Yorkshire Bank. We are in heated discussion as to who must cover the legal bill for the transfer of equity. Should this be shared or is one party obliged to cover the fees for?
Information that may be required from your conveyancer is likely to ask in relation to your Yorkshire Bank Transfer of Equity
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Please provide a copy of your National Insurance Number?
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Caveats to be read in conjunction with the above Yorkshire 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 Yorkshire Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 conditions are not complied with you may be in violation 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 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 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 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 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.
Information contained within this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.