Recently asked questions relating to Accord Buy to Let transfer of equity
- I am transferring my equity in house in Woodside to my co-owners husband, they are reapplying to Accord Buy to Let. We are in heated discussion as to who must pay the charges for the transfer of equity. Should this be shared or is one of us obliged to cover the legal bill?
- As things stand I have a joint Accord Buy to Let mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is about 300k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
- My mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with Accord Buy to Let - Surely it’s advisable to just instruct them?
- I bought a property with a friend in 2009 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Accord Buy to Let mortgage. There is a 30k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- What should I be budgeting for when it comes to what solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Accord Buy to Let - and have been quoted £350 including VAT by Accord Buy to Let's approved conveyancing solicitor, Have I been over quoted?
- I am trying to find a lawyer to deal with my transfer of equity. Accord Buy to Let are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic flawed?
- Me and my partner jointly own a house in Sedgefield
. Mortgage is with Accord Buy to Let. I want to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be simple?
Information that may be required from your conveyancing solicitor may ask in relation to your Accord Buy to Let Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please give the details of anyone to be added to the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the details of those who jointly own the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
General Advice to read 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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 varies based on the valuation of the property at the conclusion 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 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 conveyancing solicitor 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.