Sample questions relating to Bank of Ireland transfer of equity

• My mother passed away half a year ago leaving a loan-free house to me and my step brother in equal shared. Having continues to reside at the house, there was a condition in the will saying the premisescould not be sold for three years following her passing so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my half from me?
• I purchased a flat with my brother five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Bank of Ireland mortgage. There is a 40k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
• My Bank of Ireland mortgage we jointly entered into with ex, he has agreed to come off the mortgage and let me have the property. Bank of Ireland have consented to the transfer of equity to my individual name. Do Bank of Ireland write my company to confirm my salary?
• What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Bank of Ireland - and have been quoted £250 including VAT by Bank of Ireland's approved conveyancing solicitor, Is this a reasonable price?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Bank of Ireland?
• I currently have a joint Bank of Ireland mortgage with my brother and am looking into the option of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 300k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
• What if my application doesn't meet Bank of Ireland lending criteria for a transfer of equity?

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

General Advice to read in conjunction with the above Bank of Ireland transfer of equity Questions and Answers :

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 conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 conveyancing solicitor will check with Bank of Ireland 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 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Bank of Ireland Mortgage

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

If Bank of Ireland 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 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.