Metro Bank transfer of equity: q and a’s

• I am completing a Metro Bank transfer of equity request and have come to the questions regarding defaults etc. There are some debts that I have been discharging since 2009, I understand that they have long since disappeared from my credit score. Must I disclose these?
• My divorce has gone through as is the consent order. Now I have to deal with the transfer of equity at the HMLR and the Metro Bank home loan. I have asked Metro Bank for the transfer of equity forms. What happens next?
• How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Metro Bank - and have been quoted £350 including VAT by Metro Bank's appointed lawyer, Have I been over quoted?
• I am trying to find a conveyancing solicitor to deal with my transfer of equity. Metro Bank have been approached for a remortgage. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
• I understand we would need at least AP1 and Transfer Deed. Is this true?
• I am planning on removing a name from a joint mortgage and the Metro Bank require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Romsey lawyer to deal with the transfer of equity? They need to be on the Metro Bank conveyancing panel.
• I already have a home loan with Metro Bank and am keeping my existing mortgaging but seeking to have it in my sole name so my ex won't be on it any longer. How long does the whole transfer of equity process take?

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

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

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 premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation 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 pursuant to 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 varies based 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 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 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.