Top seven questions relating to Sainsbury's Bank transfer of equity

• Can I apply to request a further advance from Sainsbury's Bank as part of a Transfer of Equity?
• My partner and I jointly own a house in Romsey . Home loan is with Sainsbury's Bank. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be simple?
• What are my options where I am dissatisfied with the conveyancing solicitor who did our transfer of equity conveyancing?
• Sainsbury's Bank have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
• My wife and myself equally own a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to mitigate tax on rental income. If Sainsbury's Bank are content with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• After three years estranged I have opted to relinquish up my interest in the apartment to my husband who is refinancing with Sainsbury's Bank. Could this transfer of equity be done in less than one month?
• Law week I separated from my partner of thirty years. I'm now living with my parents again and she wants to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the Sainsbury's Bank home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to

Information that may be required from your conveyancing solicitor could ask regarding your Sainsbury's Bank Transfer of Equity

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

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 titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 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.

Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute 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.