Top seven questions relating to Tesco Bank transfer of equity

• How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my house in my sole name which is taking place at the same time as a switching mortgage via Tesco Bank?
• I am in the process of refinancing my home in Witham does my lawyer have to be on the Tesco Bank Solicitor panel. The conveyancing also involves a transfer of equity.
• As things stand I have a joint Tesco Bank mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my partner. The outstanding mortgage is in the region 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
• What are my options where I am unhappy with the conveyancing solicitor who carried out our transfer of equity conveyancing?
• I bought a house with my brother six years ago Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Tesco Bank mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• How much the typical solicitors fees are for a transfer of equity? I need to transfer equity and refinance - new loan with Tesco Bank - and have been quoted £350 excluding VAT by Tesco Bank's appointed lawyer, Have I been over quoted?
• I am trying to find a lawyer to handle my transfer of equity. Tesco Bank are dealing with the remortgage. I considered asking my mortgage broker. I understand he will likely receive a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?

Questions that your lawyer is likely to ask in relation to your Tesco Bank Transfer of Equity

Important warnings to consider in supplemental the above Tesco Bank 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 Tesco Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions 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 lawyer will check with Tesco 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 Tesco 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 conveyancing.

Preparing the Transfer of Equity with a Tesco 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 Tesco 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 conveyancer 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 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.