Frequently asked questions relating to Sainsbury's Bank transfer of equity

• Law week I separated from my partner of thirty years. I'm now living with my mum and dad and she wants to remain in the property and buy me out. What portion am I entitled to. Is it half of the equity after discharging the Sainsbury's Bank home loan? I assume proper valuations are necessary but I really need to be sure that I'm getting what I am entitled to
• Is it sensible to stop my mortgage payments with Sainsbury's Bank as soon as a date for my remortgage and transfer of equity has been set?
• What do I do if I am unhappy with the conveyancing solicitor who conducted our transfer of equity transaction?
• My fiance and myself have equal shares in a BTL. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Sainsbury's Bank are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Sainsbury's Bank mortgage account?
• Been reviewing consumer blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and simultaneously switching mortgage with Sainsbury's Bank
• I am in the process of removing a name from a joint mortgage and the Sainsbury's Bank require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Wakefield conveyancer to deal with the transfer of equity? They need to be on the Sainsbury's Bank conveyancing panel.

Sample of questions in a conveyancer questionnaire relating to Sainsbury's Bank Transfer of Equity

Important warnings to consider in supporting the above Sainsbury's Bank transfer of equity information :

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 Sainsbury's Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in 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 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 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 Sainsbury's 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 Sainsbury's 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 the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Sainsbury's 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 Sainsbury's 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.

Content 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.