Frequently asked questions relating to Astra Mortgages transfer of equity

• I am remortgaging my house in Littleborough does my lawyer have to be on the Astra Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
• I got my Decree Absolute in 2012. For some reason I never got around to change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Astra Mortgages is happy to transfer the full equity in my name (affordability checks done). Does my ex need a solicitor?
• Can I apply to request more money from Astra Mortgages as part of a Transfer of Equity?
• My brother and I got a joint mortgage with Astra Mortgages on a house 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 a price what happens next? Is there likely to be any concerns with Astra Mortgages with him being solely liable for the total loan as opposed to only half of it?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Astra Mortgages?
• At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is taking place at the same time as a remortgage with Astra Mortgages?
• What are the average conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Astra Mortgages - and have been quoted Three Hundred pounds including VAT by Astra Mortgages's appointed conveyancing solicitor, Is this a reasonable price?

Questions that your conveyancing solicitor may ask regarding your Astra Mortgages Transfer of Equity

Information to consider in in addition to the above Astra Mortgages transfer of equity Advice :

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 titles

If your property is 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 breach of your covenants under the lease. This could potentially result in 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 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 market value 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 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.

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.