Recently asked questions relating to Accord Mortgages transfer of equity
- How and when do I incur stamp duty payable for the transfer of equity in my home in my name alone which is taking place at the same time as a refinancing with Accord Mortgages?
- Last year bought a house without my wife's name on the ownership paperwork. My conveyancer said it is due to the fact that she is not in the mortgage with Accord Mortgages. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
- My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity at the land registry and the Accord Mortgages home loan. I have called Accord Mortgages for the transfer of equity forms. What do I do now?
- I acquired a property with my brother in 2008 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Accord Mortgages mortgage. There is a 30k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
- I am disposing of my share of a apartment in Hendon to the other co-owners fiance, they are sticking with Accord Mortgages being the the existing mortgage company. We are haggling as to who must cover the costs of the transfer of equity. Should this be split or is one of us liable for the fees for?
- Have recently separated from my partner of 18 years. I'm now living with my parents again and she wishes to stay in the apartment and pay me off. What portion do I get. Is it 50% of the equity after paying off the mortgage with Accord Mortgages? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Accord Mortgages mortgage account?
Questions that your conveyancing solicitor is likely to ask in relation to your Accord Mortgages Transfer of Equity
Where you 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?
Please provide the details of anyone to be added to the title deeds?
Please confirm if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Have you approached Accord Mortgages to seek consent to the Transfer of Equity
Information to consider in supplemental the above Accord Mortgages transfer of equity Info :
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 Mortgages 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 have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 Mortgages 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 Mortgages 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Accord Mortgages.
Preparing the Transfer of Equity with a Accord Mortgages 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 Mortgages 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.
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.