Accord Mortgages transfer of equity example support desk enquires

• My Accord Mortgages home loan we jointly entered into with ex, who has agreed to come off the deeds and put the house in my name alone. Accord Mortgages will permit the transfer of equity to my individual name. Do Accord Mortgages call my company to confirm my salary?
• I am thinking of remortgaging my flat in Crabtree does my lawyer have to be on the Accord Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
• Last year bought a property without my fiance’s name on the title documents. My lawyer said it is due to the fact that she is not in the loan offer with Accord Mortgages. Is it possible for me to put her name on the documents at HM Land Registry?
• As things stand I have a joint Accord Mortgages mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
• My brother and I got a joint mortgage with Accord Mortgages on a house a couple of years ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential problem with Accord Mortgages with him being solely liable for the total loan rather than only half of it?
• How and when do I incur 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 refinancing with Accord Mortgages?
• My partner and I equally own a investment property. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on the letting income. If Accord Mortgages are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.

Questions that your conveyancer may ask in relation to your Accord Mortgages Transfer of Equity

Caveats to be read 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 require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 lawyer 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 market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Accord Mortgages 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 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 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 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.