Examples of recent questions relating to Co operative Bank transfer of equity

• I am in the process of removing a name from a joint mortgage and the Co operative Bank need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Witham conveyancer to deal with the transfer of equity? They need to be on the Co operative Bank conveyancing panel.
• Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with Co operative Bank
• Law week I split up with my wife of thirty years. I'm now back with my parents again and she wants to stay in the property and pay me off. What portion do I get. Is it half of the equity after redeeming the mortgage with Co operative Bank? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
• My Co operative Bank mortgage is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Co operative Bank will permit the transfer of equity to me solely. Will Co operative Bank call my boss to verify my salary?
• My existing home loan is with Co operative Bank. Can I transfer equity to someone who is not yet 18 years old?
• Our financial adviser has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Co operative Bank - Is it not simpler easier to just instruct them?
• My friend and I got a joint mortgage with Co operative Bank on a property in 2013. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential problem with Co operative Bank with him being on the hook for the total mortgage rather than only half of it?

Sample of information requested in a conveyancer form concerning a Co operative Bank Transfer of Equity

Caveats to be read in supplemental the above Co operative 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 Co operative Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. 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 Co operative 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 Co operative 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Co operative 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 Co operative 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.