Tesco Bank transfer of equity: q and a’s

• My ex are planning to get a conveyancing solicitor in place for a remortgage with Tesco Bank. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over UK. Is it important to appoint a lawyer local to us?
• I already have a home loan with Tesco Bank and am retaining my existing mortgaging but wish to have it in my name only so my former partner will be removed from the mortgage. How long does the whole transfer of equity process take?
• My partner and myself have 50:50 shares in a buy to let. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to reduce our tax on the letting income. If Tesco Bank are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
• Law month I separated from my partner of twenty years. I'm now back with my parents again and she wishes to stay in the flat and buy me out. What portion do I get. Is it half of the equity after redeeming the mortgage with Tesco Bank? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
• Can I apply to request a further advance from Tesco Bank as part of a Transfer of Equity?
• Is it possible to transfer the equity held in my property with my Tesco Bank home loan?
• My financial adviser has suggested using their lawyer for my Transfer of Equity plus remortgage with Tesco Bank - Surely it’s better to just use them?

Examples of information requested in a conveyancing solicitor questionnaire relating to Tesco Bank Transfer of Equity

General Advice to read in in addition to the above Tesco 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 Tesco Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger 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 cases, 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 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 varies based on the market value of the property at the time of completion 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 lawyer 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 lawyer 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 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.