Ahli United Bank transfer of equity example support desk enquires

• What are the average conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Ahli United Bank - and have been quoted £250 including VAT by Ahli United Bank's approved lawyer, Have I been over quoted?
• I already have a mortgage with Ahli United Bank and am retaining my existing mortgaging but applying to have it in my sole name so my ex will come off the mortgage. How long can it take for the application to be processed?
• My mother passed away half a year ago leaving a mortgage-free semi to me and my half brother in equal shared. Having continues to reside at the property, there was a condition in her will specifying that the propertycould not be sold for three years following her passing so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to purchase my half from me?
• At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is happening at the same time as a switching mortgage via Ahli United Bank?
• After four years apart I have decided to give up my interest in the flat to my husband who is re-mortgaging with Ahli United Bank. Can a transfer of equity be completed within four weeks?
• My divorce has gone through as is the consent order. Now I have to address the transfer of equity for the property and the Ahli United Bank mortgage. I have called Ahli United Bank for the transfer of equity forms. What happens next?
• What if my application doesn't meet Ahli United Bank lending criteria for a transfer of equity?

Sample of questions in a lawyer questionnaire concerning a Ahli United Bank Transfer of Equity

Caveats to be read in in addition to the above Ahli United Bank transfer of equity Advice :

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 Ahli United Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 conveyancer will check with Ahli United 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 Ahli United 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Ahli United 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 Ahli United 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 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.