Examples of recent questions relating to Allied Irish Bank transfer of equity

• Me and a friend got a joint mortgage with Allied Irish Bank on a apartment about a year ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential problem with Allied Irish Bank with him being on the hook for the total loan rather than only part of it?
• How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is happening simultaneously with a switching mortgage via Allied Irish Bank?
• What can I do where I am dissatisfied with the conveyancer who undertook my transfer of equity conveyancing?
• Allied Irish Bank have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Allied Irish Bank?
• My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity for the property and the Allied Irish Bank mortgage. I have asked Allied Irish Bank for the transfer of equity forms. What are my next steps?
• I currently have a joint Allied Irish Bank mortgage with my cousin and am investigating the option of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase a place with my partner. The outstanding mortgage is approx 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax payable?

Sample of information requested in a lawyer form relating to Allied Irish Bank Transfer of Equity

Caveats to be read in supplemental the above Allied Irish Bank transfer of equity Info :

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 Allied Irish Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could potentially result in 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 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 Allied Irish 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 Allied Irish 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 market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Allied Irish Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Allied Irish 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 conveyancing solicitor 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.