Frequently asked questions relating to Accord Buy to Let transfer of equity
- My brother and I got a joint mortgage with Accord Buy to Let on a property in 2013. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential problem with Accord Buy to Let with him being on the hook for the total mortgage as opposed to only part of it?
- I am considering mortgaging my apartment in Miles Platting
does my lawyer need to be on the Accord Buy to Let Solicitor panel. The conveyancing also involves a transfer of equity.
- I am planning on removing a name from a joint mortgage and the Accord Buy to Let require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancer to deal with the transfer of equity? They need to be on the Accord Buy to Let conveyancing panel.
- I got my Decree Absolute four years ago. For some reason I never dealt with the transfer ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Accord Buy to Let is willing to transfer the property and loan in my name (affordability checks done). Does my ex need a solicitor?
- Our mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Accord Buy to Let - Is it not simpler easier to just instruct them?
- My dad passed away half a year ago leaving a unencumbered bungalow to me and my half brother equally. He has always lived in the property, there was a condition in the will specifying that the housecould not be sold for three years following her death so he could remain there for a while. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I need to transfer equity and remortgage - new loan with Accord Buy to Let - and have been quoted £350 including VAT by Accord Buy to Let's appointed conveyancer, Have I been over quoted?
Information that may be required from your conveyancer may ask in relation to your Accord Buy to Let Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Important warnings to consider in supplemental 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 properties
If your property is leasehold, provisions in 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 terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Accord Buy to Let your property may be repossessed.
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 lawyer 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.