Top seven questions relating to Ulster Bank transfer of equity

• I already have a home loan with Ulster Bank and am keeping my current mortgaging but wish to have have the equity transferred to my name only so my former wife will no longer be on the mortgage. How long does the whole transfer of equity process take?
• Law week I split up with my wife of thirty years. I'm now back with my parents again and she wants to remain in the property and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with Ulster Bank? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
• My mother passed away last January leaving a mortgage-free property to me and my brother 50:50. He has always lived in the premises, there was a clause in her will specifying that the housecould not be sold for 2 years after her death so he could remain there for a prescribed period. He now wishes to remain in the premises beyond the prescribed 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 conventional way to buy my half from me?
• What do I do if I am not happy with the conveyancer who carried out our transfer of equity transaction?
• Me and my partner jointly own a flat in Blaenavon . Home loan is with Ulster Bank. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be straightforward?
• My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity at the HMLR and the Ulster Bank mortgage. I have asked Ulster Bank for the transfer of equity application. What are my next steps?
• How and when do I cover the costs of stamp duty payable for the transfer of equity in my property in my name alone which is taking place simultaneously with a remortgage via Ulster Bank?

Questions that your conveyancer could ask in relation to your Ulster Bank Transfer of Equity

General Advice to read in supporting the above Ulster Bank transfer of equity Advice :

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 Ulster Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of your covenants under 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 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 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 valuation of the property at the time of completion 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 lawyer 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 conveyancing solicitor 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.