Reliance Bank transfer of equity example support desk enquires

• My brother and I got a joint mortgage with Reliance Bank on a apartment in 2013. I am now thinking of buying a house by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential issue with Reliance Bank with him being responsible for the total mortgage rather than only part of it?
• Am I best advised stop the direct debit for my mortgage with Reliance Bank as soon as a date for my remortgage and transfer of equity has been set?
• I am completing a Reliance Bank transfer of equity application and have arrived at the part concerning defaults etc. I do some debts that I have been discharging since 2007, in fact they have long since disappeared from my credit records. Do I need to reveal these?
• I am in the process of removing a name from a joint mortgage and the Reliance Bank need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Wakefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Reliance Bank conveyancing panel.
• Having been four years apart I have made the decision to relinquish up my share of our house to my husband who is refinancing with Reliance Bank. Could this transfer of equity be done inside 28 days?
• I acquired a house with a friend in 2009 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Reliance Bank mortgage. There is a meaningful difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
• I understand we would need at least AP1 and TR1. Is this true?

Information that may be required from your conveyancing solicitor may ask about your Reliance Bank Transfer of Equity

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

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation 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 as a result of 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 conveyancer 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 varies based on the market value of the property at finalisation of the transfer of equity transaction.

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 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 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.