Frequently asked questions relating to Accord Buy to Let transfer of equity
- Accord Buy to Let yesterday agreed I can take over the mortgage on the house. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- Have recently split up with my wife of thirty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with Accord Buy to Let? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being walked over
- Me and a friend got a joint mortgage with Accord Buy to Let on a house in 2013. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential issue with Accord Buy to Let with him being solely liable for the total mortgage as opposed to only part of it?
- How do I go about adding or removing names (transfer of equity) to or from my Accord Buy to Let mortgage account?
- I plan to refinance my apartment in Dunnington
moving from Halifax to Accord Buy to Let. The maisonette is jointly owned but intend for it to be in my sole name once I switch. My wife has agreed to this and is willing to transfer equity but neither of us want to incur lawyer charges.
- I am considering remortgaging my house in Heathfield
does my lawyer have to be on the Accord Buy to Let Solicitor panel. The conveyancing also involves a transfer of equity.
- My Accord Buy to Let mortgage is in joint names with ex, who is agreeable to come off the deeds and put the house in my name alone. Accord Buy to Let have consented to the transfer of equity to my individual name. Do Accord Buy to Let call my company to verify my salary?
Information that may be required from your conveyancer could ask in relation to your Accord Buy to Let Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Has consent been obtained from Accord Buy to Let to the proposed transfer of equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the details of anyone to be removed from the title deeds?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
General Advice to read in further to 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger 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 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 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 varies based on the market value 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 lawyer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.