Recently asked questions relating to Metro Bank transfer of equity

• I am completing a Metro Bank transfer of equity request and have arrived at the section regarding debts etc. I do some debts that I have been discharging since 2007, in fact they no longer remain my credit records. Do I need to reveal these?
• In 2009 I bought a flat without my partner's name on the ownership paperwork. My conveyancing solicitor said it is because she was not in the mortgage with Metro Bank. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
• What can I do where I am not happy with the conveyancing solicitor who carried out my transfer of equity conveyancing?
• I got my Decree Absolute in 2010. Foolishly I never got around to transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Metro Bank is content to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
• I am remortgaging my house in Wakefield does my lawyer have to be on the Metro Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
• Me and a friend got a joint mortgage with Metro Bank on a house about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any concerns with Metro Bank with him being responsible for the total mortgage as opposed to only half of it?
• I co-own a property in Witham , with a Metro Bank mortgage with my former partner. Him and his fiance are going to buy me out. We had the go ahead from Metro Bank to replace my name with hers. The transfer of equity needs to be done by a conveyancer for Metro Bank (supposedly). In order to save fees can I do the Land Registry formalities?

Information that may be required from your conveyancing solicitor may ask in relation to your Metro Bank Transfer of Equity

Important warnings to consider in supporting the above Metro Bank transfer of equity Info :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Metro Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 conditions are not strictly observed you may be in breach of your covenants under 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 conveyancing solicitor will check with Metro 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 Metro 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 conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Metro Bank 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 Metro 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 lawyer 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 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.