Recently asked questions relating to Astra Mortgages transfer of equity
- My brother and I got a joint mortgage with Astra Mortgages on a flat in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any problem with Astra Mortgages with him being on the hook for the total mortgage rather than only half of it?
- I already have a home loan with Astra Mortgages and am keeping my existing mortgaging but wish to have have the equity transferred to my sole name so my former wife won't be on it any longer. How long do Astra Mortgages take to process the application?
- I am planning on removing a name from a joint mortgage and the Astra Mortgages require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Friern Barnet
conveyancing solicitor to deal with the transfer of equity? They need to be on the Astra Mortgages conveyancing panel.
- My Astra Mortgages mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and put the house in my name alone. Astra Mortgages have consented to the transfer of equity to me solely. Do Astra Mortgages contact my company to verify my salary?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Astra Mortgages?
- My father passed away half a year ago leaving a unencumbered bungalow to me and my step brother equally. Having continues to reside at the property, there was a condition in her will saying the premisescould not be sold for three years after her passing so he could remain there for a while. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to acquire my equity?
- When it comes to transfer of equity conveyancing involving refinance with Astra Mortgages should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Examples of questions in a conveyancing solicitor questionnaire relating to Astra Mortgages Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Have you approached Astra Mortgages to seek consent to the Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Is it the case that 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 supporting the above Astra 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 Astra Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Astra Mortgages your property may be repossessed.
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.
Content 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.