Sample questions relating to Santander transfer of equity

• After 3 years apart I have opted to relinquish up my interest in the flat to my husband who is re-mortgaging with Santander. Could this transfer of equity be done inside four weeks?
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• I am am in need of a conveyancing solicitor to handle my transfer of equity. Santander have been approached for a refinancing. I thought of asking my mortgage broker. I am lead to believe he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?
• My partner and myself equally own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on rental income. Assuming Santander are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
• Is there such a thing a transfer of equity stamp duty calculator?
• Last year purchased a flat without my fiance’s name on the deeds. My lawyer claimed it is due to the fact that she was not in the mortgage with Santander. Is it possible for me to put her name on the documents at HMLR?
• My brother and I got a joint mortgage with Santander on a property about a year ago. I am now looking to get a house by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Is there likely to be any concerns with Santander with him being solely liable for the total mortgage rather than only part of it?

Examples of information requested in a conveyancer questionnaire concerning a Santander Transfer of Equity

Important warnings to consider in further to the above Santander 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 Santander conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 lawyer will check with Santander 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 Santander 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 Santander Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Santander 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.