Recently asked questions relating to Astra Mortgages transfer of equity

• At what stage do I pay stamp duty payable for the transfer of equity in my property in my name alone which is taking place at the same time as a refinancing with Astra Mortgages?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Astra Mortgages?
• My ex are looking to get a lawyer in place for a new mortgage with Astra Mortgages. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
• I am am in need of a conveyancer to undertake my transfer of equity. Astra Mortgages have been approached for a refinancing. I thought of asking my financial adviser. I am lead to believe he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
• Having been 3 years apart I have opted to relinquish up my interest in the apartment to my husband who is refinancing with Astra Mortgages. Can a transfer of equity be done within four weeks?
• Me and a friend got a joint mortgage with Astra Mortgages on a flat about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any concerns with Astra Mortgages with him being on the hook for the total loan as opposed to only half of it?
• My mum died early last year leaving a unencumbered bungalow to me and my step brother 50:50. Having continues to reside at the premises, there was a condition in the will saying the propertycould not be sold for three years after her passing so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to acquire my equity?

Questions that your lawyer may ask about your Astra Mortgages Transfer of Equity

General Advice to read in conjunction with the above Astra Mortgages 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 Astra 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 landlord. If such conditions 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 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 Astra 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 Astra 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 valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Astra 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 Astra 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 contained within 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.