If your new home is being purchased by way of share transfer and you are borrowing from a bank, then the Bank will take a charge against shares to secure its loan by way of a security interest agreement. They will take this charge against shares, either by requiring that the share certificate is deposited with the Bank or the shares are transferred into the Bank’s name.
Once you sign your offer letter from the Bank (sometimes called the facility letter) the Bank will instruct its lawyer to draft the legal documentation. To avoid any hold ups with the purchase completion date, it is important to ensure that you return your signed offer letter back to the Bank as soon as possible.
As soon as we receive the Bank’s security documents we will endeavour to send the documents to you as soon as possible, to give you time to read over prior to our meeting. We will, of course, answer any questions you may have when we meet.
It should also be noted that in addition to the documentation that you will be required to sign, Parslows Jersey will also be required to provide a certificate of title to the Bank.
In essence, this document will declare to the Bank that the shares you are buying are suitable for a charge against shares to be registered.
This certificate will require us to confirm that the title to the property is satisfactory, that the relevant consents from the various States’ departments are in force (e.g. Housing consents), that the various search letter replies are satisfactory and to confirm the good standing of the company and title to the shares.
We are obligated to disclose any material adverse factors affecting the property, the company and the shares.
Payment of Jersey Land Transaction Tax
Please note that a loan with a charge against shares will attract a land transaction tax (LTT). This is in addition to the duty or tax that you will pay to purchase your property. You may qualify for reduced stamp duty if you are a first time buyer.
You will need to provide us with cleared funds for LTT (if any) prior to completion.
Payment of proceeds of loan
Your loan will normally be made available immediately.
Please remember that your loan will not be provided gross. The bank and its lawyer will in most circumstances deduct their fees and charges prior to transfer (unless you have arranged otherwise).
Funds which arrive in our account too late on the day in question to forward them on will be dealt with the next day. We cannot influence the speed of the banking system. In some circumstances this may involve you in having to account for a day’s interest.
For advice, assistance or further information on buying together in Jersey please do not hesitate to call 630530 or email us on firstname.lastname@example.org or call 630530.