Common questions relating to State Bank of India UK transfer of equity

• What if my application doesn't meet State Bank of India UK lending criteria for a transfer of equity?
• At what point do I incur the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening at the same time as a switching mortgage with State Bank of India UK?
• I am are seeking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with State Bank of India UK. I I am concerned about by bill escalating out of control and there's various conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• I am looking for a conveyancer to undertake my transfer of equity. State Bank of India UK have been approached for a refinancing. I thought of asking my financial adviser. I understand he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic flawed?
• I am transferring my equity in apartment in Hendon to my co-owners fiance, they are sticking with State Bank of India UK being the the existing lender. We are in heated discussion as to who must pay the fees for the transfer of equity. Is this normally shared or is one of us obliged to cover the costs of?
• Law month I split up with my wife of 18 years. I'm now back with my mum and dad and she wishes to remain in the apartment and buy me out. What portion do I get. Is it half of the equity after discharging the mortgage with State Bank of India UK? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
• I am planning on removing a name from a joint mortgage and the State Bank of India UK require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Heathfield conveyancing solicitor to deal with the transfer of equity? They need to be on the State Bank of India UK conveyancing panel.

Sample of information requested in a conveyancing solicitor form relating to State Bank of India UK Transfer of Equity

Caveats to be read in conjunction with the above State Bank of India UK 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 State Bank of India UK conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed 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 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 conveyancing solicitor will check with State Bank of India UK 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 State Bank of India UK 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 conveyancing.

Preparing the Transfer of Equity with a State Bank of India UK 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 State Bank of India UK 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.