Reliance Bank transfer of equity: q and a’s

• Can you tell me how to have a person removed from the title documents to a house where the home loan is with Reliance Bank
• Will I have to pay any fees for a Transfer of Equity where the current mortgage is with Reliance Bank?
• I jointly own a apartment in Miles Platting , with a Reliance Bank mortgage with my former husband. Him and his fiance are going to acquire my share. We had the go ahead from Reliance Bank to remove my name with hers. The transfer of equity has to be completed by a lawyer for Reliance Bank (apparently). Is it possible for us to deal with the Land Registry change?
• Is it sensible to cancel my mortgage payments with Reliance Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• Is it possible to apply to request more money from Reliance Bank as part of a Transfer of Equity?
• I acquired a flat with a friend in 2008 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Reliance Bank mortgage. There is a meaningful difference between the value the Reliance Bank say and what the property would sell for currently. Can you offer any advice?
• As things stand I have a joint Reliance Bank mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my fiance. The outstanding mortgage is approx 200k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?

Sample of questions in a conveyancer questionnaire relating to Reliance Bank Transfer of Equity

Information to consider in conjunction with the above Reliance 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 Reliance Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 cases, 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 Reliance 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 Reliance 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 conveyancing.

Preparing the Transfer of Equity with a Reliance Bank 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 Reliance 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 conveyancing solicitor 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.