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Questions and answers: Astra Mortgages transfer of equity

  • What is the process for adding or removing names (transfer of equity) to or from my Astra Mortgages mortgage account?
  • My partner and myself have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name to mitigate tax on rental income. If Astra Mortgages are fine with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
  • I am hoping to remortgage my apartment in Miles Platting switching from Skipton to Astra Mortgages. The maisonette is jointly owned but I would like it to be in my sole name when I transfer. My former partner has agreed to this and is happy to sign a form but neither of us want to incur conveyancing solicitor fees.
  • I recently bought a apartment without my wife's name on the title documents. My lawyer claimed it is because she was not in the mortgage with Astra Mortgages. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Astra Mortgages?
  • I am considering remortgaging my apartment in Timperley does my lawyer need to be on the Astra Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
  • I am answering a Astra Mortgages transfer of equity form and have arrived at the part concerning debts etc. There are some debts that I have been paying off since 2008, I understand that they have long since disappeared from my credit records. Am I obliged to disclose these?

Sample of questions in a conveyancing solicitor questionnaire relating to Astra Mortgages Transfer of Equity

Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?

Please list all persons who occupy the property, their respective ages and relationships to you.

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Has one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Caveats to be read in supplemental the above Astra Mortgages transfer of equity Info :

Tax and Legal

There are numerous potential 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

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 freeholder. If such terms are not adhered to you may be in breach of 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 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 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 market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Astra Mortgages.

Preparing the Transfer of Equity with a Astra Mortgages 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 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 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.


Frequently asked questions relating to ASTRA mortgages transfer of equity