Common questions relating to Ahli United Bank transfer of equity

• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Ahli United Bank?
• What is the process for having a person removed from the deeds to a house where the mortgage is with Ahli United Bank
• I own a house in Timperley , with a Ahli United Bank mortgage with my former husband. Him and his new partner are going to buy me out. We had approval from Ahli United Bank to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Ahli United Bank (apparently). In order to save fees can I deal with the Land Registry formalities?
• I currently have a joint Ahli United Bank mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
• I got my Decree Absolute two years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Ahli United Bank is willing to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
• I am completing a Ahli United Bank transfer of equity application and have come to the part that asks about debts etc. I do some debts that I have been clearing since 2007, I understand that they have long since disappeared from my credit records. Do I need to set these out?
• Me and my former partner and I are searching for a value for money conveyancing solicitor to assist in a transfer of equity and refinance with Ahli United Bank. I really don't want to get ripped off and there are plenty conveyancing practices who do transfer of equity conveyancing out there...who's the best?

Information that may be required from your lawyer could ask about your Ahli United Bank Transfer of Equity

General Advice to read in supporting the above Ahli United 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 Ahli United Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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.

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.