Frequently asked questions relating to Accord Buy to Let transfer of equity
- I already have a home loan with Accord Buy to Let and am keeping my current mortgaging but wish to have have the equity transferred to my sole name so my ex will no longer be on the deeds. How long does the whole transfer of equity process take?
- When it comes to transfer of equity conveyancing involving refinance with Accord Buy to Let should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My divorce has gone through as is the consent order. Now I need to address the transfer of equity on title deeds and the Accord Buy to Let home loan. I have called Accord Buy to Let for the transfer of equity application. What are my next steps?
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Accord Buy to Let?
- My fiance and I have equal shares in a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. If Accord Buy to Let are happy with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- As things stand I have a joint Accord Buy to Let mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase a place with my partner. The outstanding mortgage is about 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
- I purchased a house with my cousin six years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Accord Buy to Let mortgage. There is a 30k difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
Questions that your lawyer could ask in relation to your Accord Buy to Let Transfer of Equity
Have you approached Accord Buy to Let to obtain consent to the Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Is it the case that one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the details of anyone to be removed from the title deeds?
Important warnings to consider in supporting the above Accord Buy to Let 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 Accord Buy to Let conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 Accord Buy to Let 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 Accord Buy to Let 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Accord Buy to Let.
Preparing the Transfer of Equity with a Accord Buy to Let 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 Accord Buy to Let 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 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.