Questions and answers: Bank of Ireland Mortgages transfer of equity

• What is the process for having a person removed from the deeds to a property if the home loan is with Bank of Ireland Mortgages
• I am transferring my share of a apartment in Hendon to the other co-owners husband, they are sticking with Bank of Ireland Mortgages being the the existing mortgage company. We are in heated discussion as to who must cover the charges for the transfer of equity. Is this normally split or is one party obliged to cover the fees for?
• I am am in need of a lawyer to deal with my transfer of equity. Bank of Ireland Mortgages are dealing with the remortgage. I considered asking my financial adviser. I understand he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
• My Bank of Ireland Mortgages mortgage is in joint names with ex, he has agreed to be removed and let me have the property. Bank of Ireland Mortgages have consented to the transfer of equity to me solely. Will Bank of Ireland Mortgages get in touch with my company to verify my salary?
• Bank of Ireland Mortgages have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Bank of Ireland Mortgages?
• How much the typical solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Bank of Ireland Mortgages - and have been quoted £350 including VAT by Bank of Ireland Mortgages's appointed conveyancer, Is this a reasonable price?

Information that may be required from your lawyer is likely to ask in relation to your Bank of Ireland Mortgages Transfer of Equity

General Advice to read in further to the above Bank of Ireland Mortgages transfer of equity information :

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 Bank of Ireland Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, 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 terms are not adhered to you may be in violation of the lease. This could trigger 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 Bank of Ireland Mortgages 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 Bank of Ireland Mortgages 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 conveyancing.

Preparing the Transfer of Equity with a Bank of Ireland Mortgages 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 Bank of Ireland Mortgages 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.