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Astra Mortgages transfer of equity example support desk enquires

  • I acquired a property with my cousin in 2009 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Astra Mortgages mortgage. There is a 40k difference between the value the Astra Mortgages hold and what the property would sell for currently. Can you offer any advice?
  • I own a flat in Wakefield , with a Astra Mortgages mortgage with my former husband. Him and his new partner are going to acquire my share. We had approval from Astra Mortgages to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Astra Mortgages (apparently). Can we do the Land Registry change?
  • Is it sensible to stop the direct debit for my mortgage with Astra Mortgages once a date for my remortgage and transfer of equity has been agreed?
  • My mortgage broker has suggested using their lawyer for the Transfer of Equity plus remortgage with Astra Mortgages - Is it not simpler advisable to just instruct them?
  • At what stage do I pay stamp duty payable for the transfer of equity in my property in my sole name which is happening at the same time as a remortgage via Astra Mortgages?
  • I am under the impression we would need at least AP1 and TR1. Is this true?
  • I already have a home loan with Astra Mortgages and am retaining my existing mortgaging but applying to have it in my name alone so my former wife will be removed from the deeds. How long can it take for the forms to be processed?

Information that may be required from your conveyancing solicitor may ask in relation to your Astra Mortgages Transfer of Equity

If 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” Form.

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Please clarify if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?

Have you approached Astra Mortgages to obtain consent to the Transfer of Equity

Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Who will be responsible for the costs of the Transfer of Equity?

Information to consider in in addition to the above Astra Mortgages transfer of equity Questions and Answers :

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

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
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 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 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 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