Frequently asked questions relating to Ulster Bank transfer of equity

• I am led to believe we would need at least AP1 and TR1. Is this true?
• Is it sensible to stop my mortgage payments with Ulster Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• What are the average solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Ulster Bank - and have been quoted Three Hundred pounds plus VAT by Ulster Bank's appointed conveyancing solicitor, Have I been over quoted?
• Me and my partner co-own a property in Miles Platting . Mortgage is with Ulster Bank. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
• I got my Decree Absolute in 2012. I simply never dealt with the change the ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Ulster Bank is happy to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
• Is there such a thing a transfer of equity stamp duty calculator?
• My friend and I got a joint mortgage with Ulster Bank on a house a couple of years ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential concerns with Ulster Bank with him being responsible for the total loan rather than only half of it?

Questions that your conveyancing solicitor could ask about your Ulster Bank Transfer of Equity

Important warnings to consider in supporting the above Ulster Bank transfer of equity information :

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 Ulster Bank 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 require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of the lease. This could trigger 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 Ulster 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 Ulster 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Ulster 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 Ulster 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.

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.