Frequently asked questions relating to April Mortgages transfer of equity

• I got my Decree Absolute two years ago. I simply never got around to transfer ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. April Mortgages is happy to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?
• I am are looking to find an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with April Mortgages. I am aware of the risk of getting ripped off but with lots of conveyancing firms who do transfer of equity conveyancing out there...how do I know which one is best appoint?
• I am disposing of my equity in apartment in Woodside to the other co-owners fiance, they are sticking with April Mortgages as the the existing lender. We are haggling as to who must pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the costs of?
• My April Mortgages mortgage we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. April Mortgages have consented to the transfer of equity to my individual name. Do April Mortgages call my boss to check my salary?
• My partner and myself jointly own a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to reduce our tax on the letting income. If April Mortgages are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• As things stand I have a joint April Mortgages mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a place with my partner. The outstanding mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with April Mortgages?

Questions that your conveyancing solicitor could ask regarding your April Mortgages Transfer of Equity

Caveats to be read in conjunction with the above April Mortgages transfer of equity information :

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 April Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be 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 conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 April 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 April 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 varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a April 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 April 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 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 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.