Recently asked questions relating to Allied Irish Bank transfer of equity

• At what stage do I incur stamp duty chargeable for the transfer of equity in my property in my sole name which is taking place at the same time as a remortgage with Allied Irish Bank?
• I currently have a joint Allied Irish Bank mortgage with my cousin and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
• I am completing a Allied Irish Bank transfer of equity request and have arrived at the part concerning defaults etc. There are some debts that I have been clearing since 2007, in fact they have long since disappeared from my credit score. Must I disclose these?
• I already have a home loan with Allied Irish Bank and am maintaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my former partner will no longer be on the mortgage. How long does the whole transfer of equity process take?
• Can I apply to borrow a further advance from Allied Irish Bank as part of a Transfer of Equity?
• My Allied Irish Bank mortgage we jointly entered into with ex, who is agreeable to be removed and let me have the property. Allied Irish Bank will permit the transfer of equity to my individual name. Do Allied Irish Bank get in touch with my employer to confirm my salary?
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Allied Irish Bank?

Questions that your conveyancer is likely to ask about your Allied Irish Bank Transfer of Equity

Caveats to be read in supplemental the above Allied Irish 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 Allied Irish 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 obtain the consent of the freeholder. If such restrictions are not strictly observed 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 conveyancing solicitor 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 is dependent on the market value of the property at the time of completion 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 conveyancer 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.