Frequently asked questions relating to Secure Trust Bank transfer of equity

• Is it sensible to cancel the direct debit for my mortgage with Secure Trust Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• My mum passed away half a year ago leaving a unencumbered semi to me and my step brother equally. Having continues to reside at the property, there was a clause in the will saying the housecould not be sold for three years following her death so he could reside there for a prescribed period. He now wants to remain in the premises beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to buy my equity?
• My Secure Trust Bank mortgage is in joint names with ex, who is agreeable to come off the deeds and let me have the property. Secure Trust Bank will permit the transfer of equity to my individual name. Will Secure Trust Bank contact my employer to confirm my salary?
• What is the process for having someone removed off the deeds to a house where the home loan is with Secure Trust Bank
• How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is happening at the same time as a switching mortgage via Secure Trust Bank?
• Me and a friend got a joint mortgage with Secure Trust Bank on a flat in 2013. 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? Would there be any potential issue with Secure Trust Bank with him being responsible for the total loan as opposed to only half of it?
• I am in the process of removing a name from a joint mortgage and the Secure Trust Bank need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Wakefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Secure Trust Bank conveyancing panel.

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

General Advice to read in supplemental the above Secure Trust 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 Secure Trust 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 require 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 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 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 conveyancer will check with Secure Trust 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 Secure Trust 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 market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Secure Trust Bank 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 Secure Trust 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 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.