Examples of recent questions relating to Accord Buy to Let transfer of equity
- Our mortgage broker has suggested using their conveyancer for my Transfer of Equity plus remortgage with Accord Buy to Let - Surely it’s advisable to just use them?
- Am I best advised cancel my mortgage payments with Accord Buy to Let once a date for my remortgage and transfer of equity has been agreed?
- My partner and I jointly own a flat in Friern Barnet
. Mortgage is with Accord Buy to Let. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be simple?
- Online research suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Accord Buy to Let
- I currently 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 extracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is approx 250k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
- How and when do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage via Accord Buy to Let?
- My mother passed away early last year leaving a loan-free semi to me and my half brother 50:50. He has always lived in the house, there was a condition in the will specifying that the housecould not be sold for three years following her passing so he could remain there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to acquire my half from me?
Information that may be required from your conveyancer may ask about your Accord Buy to Let Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
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 let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Is there to 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
Please provide the name(s) and addresse(s) of those who jointly own the property with you?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Caveats to be read in supplemental the above Accord Buy to Let transfer of equity Advice :
Tax and Legal
There may be various 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 require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation 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 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 is dependent on the market value of the property at the time of completion 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 conveyancing solicitor 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.
Information provided 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.