LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
ASTRA mortgages

Common questions relating to Astra Mortgages transfer of equity

  • When it comes to transfer of equity conveyancing involving refinance with Astra Mortgages should I be charged value added tax 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
  • I intend to refinance my maisonette in Wakefield switching from Barnsley BS to Astra Mortgages. The maisonette is currently in joint names but propose for it to be in my sole name when I remortgage. My husband is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor charges.
  • How and when do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing via Astra Mortgages?
  • Me and a friend got a joint mortgage with Astra Mortgages on a apartment in 2013. I am now thinking of purchasing a house on my own and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Is there likely to be any concerns with Astra Mortgages with him being on the hook for the total loan rather than only half of it?
  • My Astra Mortgages home loan is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Astra Mortgages will permit the transfer of equity to me solely. Will Astra Mortgages get in touch with my employer to confirm my salary?
  • Three years ago I purchased a flat without my fiance’s name on the title documents. My lawyer claimed it is because she is not in the loan offer with Astra Mortgages. Is it possible for me to put her name on the deeds?
  • Astra Mortgages have just agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the house in addition?

Examples of questions in a conveyancing solicitor form relating to Astra Mortgages Transfer of Equity

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

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

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

Important warnings to consider in conjunction with 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 premises

If your property is leasehold, 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 conditions are not strictly observed you may be in breach 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 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 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 is dependent on the market value 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 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.


Frequently asked questions relating to ASTRA mortgages transfer of equity