State Bank of India UK transfer of equity: q and a’s

• My mum died seven months ago leaving a loan-free semi to me and my half brother 50:50. He has always lived in the premises, there was a clause in her will saying the premisescould not be sold for 24 months after her death so he could continue to live there for a while. He now wants to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
• I currently have a joint State Bank of India UK mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax involved?
• My partner and I have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If State Bank of India UK are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with State Bank of India UK?
• Is it sensible to cancel my mortgage payments with State Bank of India UK once a date for my remortgage and transfer of equity has been set?
• Two years ago I purchased a apartment without my fiance’s name on the title. My conveyancing solicitor advised it is due to the fact that she was not in the mortgage with State Bank of India UK. I'm wondering is there any way that I can put her name on the title?
• I own a flat in Friern Barnet , with a State Bank of India UK mortgage with my former partner. He and his fiance are going to buy me out. We had the go ahead from State Bank of India UK to replace my name with hers. The transfer of equity has to be done by a lawyer for State Bank of India UK (apparently). In order to save fees can I deal with the Land Registry change?

Questions that your conveyancer may ask about your State Bank of India UK Transfer of Equity

Important warnings to consider in supplemental the above State Bank of India UK transfer of equity Info :

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 State Bank of India UK conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation 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 lawyer 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 is dependent on the valuation of the property at the time of completion 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 lawyer 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 conveyancer 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 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.