Astra Mortgages transfer of equity example support desk enquires

• Astra Mortgages have today agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?
• My dad passed away seven months ago leaving a unencumbered bungalow to me and my step brother in equal shared. He has always lived in the property, there was a condition in her will specifying that the propertycould not be sold for 24 months after her passing so he could remain there for a prescribed period. He now wants to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to acquire my share?
• Will I incur any charges for a Transfer of Equity where the current mortgage is with Astra Mortgages?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Astra Mortgages?
• I am in the market for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Astra Mortgages. I want to avoid being ripped off but with various conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
• My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Astra Mortgages home loan. I have asked Astra Mortgages for the transfer of equity application. What happens next?
• My friend and I got a joint mortgage with Astra Mortgages on a flat a couple of years ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential concerns with Astra Mortgages with him being responsible for the total mortgage rather than only half of it?

Sample of information requested in a conveyancer questionnaire relating to Astra Mortgages Transfer of Equity

Information to consider in further to 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 properties

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 conveyancing.

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.