Top seven questions relating to Ulster Bank transfer of equity

• My mortgage broker has recommended their lawyer for the Transfer of Equity plus remortgage with Ulster Bank - won’t it be advisable to just instruct them?
• 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 set?
• I plan to remortgage my home in Blaenavon moving from Bank of Scotland to Ulster Bank. The maisonette is currently in joint names but propose for it to be in my sole name once I remortgage. My husband has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• My ex are looking to get a lawyer in place for a refinance with Ulster Bank. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over the country. How necessary is it to instruct a conveyancer local to us?
• What are my options where I am unhappy with the conveyancer who carried out our transfer of equity conveyancing?
• What are the average solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Ulster Bank - and have been quoted £250 including VAT by Ulster Bank's approved conveyancing solicitor, Is this is a good price or not?
• I jointly own a flat in Friern Barnet , with a Ulster Bank loan with my ex husband. Him and his new partner are going to buy me out. We had the go ahead from Ulster Bank to remove my name with hers. The transfer of equity has to be done by a lawyer for Ulster Bank (supposedly). Is it possible for us to deal with the Land Registry formalities?

Examples of information requested in a lawyer questionnaire concerning a Ulster Bank Transfer of Equity

Important warnings to consider in supplemental 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 premises

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Ulster Bank Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 lawyer 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 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.