Frequently asked questions relating to Astra Mortgages transfer of equity
- What do I do if I am not happy with the lawyer who conducted my transfer of equity transaction?
- How much the typical legal fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Astra Mortgages - and have been quoted £350 including VAT by Astra Mortgages's appointed conveyancing solicitor, Have I been over quoted?
- As things stand I have a joint Astra Mortgages mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty involved?
- I already have a home loan with Astra Mortgages and am maintaining my current mortgaging but applying to have it in my name alone so my former partner will be removed from the deeds. How long do Astra Mortgages take to process the application?
- Law month I separated from my partner of 18 years. I'm now living with my parents again and she wants to stay in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after discharging the Astra Mortgages home loan? I assume proper valuations are required but I would like to be confident that I'm getting I am not being taken advantage of
- Astra Mortgages have today agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
- I got my Decree Absolute three years ago. For some reason I never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Astra Mortgages is content to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
Questions that your lawyer is likely to ask in relation to your Astra Mortgages Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
If you are adding someone 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” Form.
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Astra Mortgages to seek consent to the Transfer of Equity
Caveats to be read in further to the above Astra Mortgages transfer of equity Questions and Answers :
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 properties
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 restrictions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 conveyancing solicitor 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 the conclusion of the transfer of equity conveyancing.
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 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 conveyancing solicitor 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 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.