Frequently asked questions relating to Aviva Equity Release transfer of equity

• My mum died last January leaving a unencumbered house to me and my half brother 50:50. He has always lived in the premises, there was a clause in her will saying the housecould not be sold for 24 months after her passing so he could reside there for a while. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to buy my half from me?
• I am thinking of mortgaging my flat in Littleborough does my lawyer need to be on the Aviva Equity Release Conveyancing panel. The conveyancing also involves a transfer of equity.
• My current home loan is with Aviva Equity Release. Can I transfer equity to someone less than eighteen years old?
• My Aviva Equity Release home loan is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Aviva Equity Release have consented to the transfer of equity to my individual name. Do Aviva Equity Release call my boss to confirm my salary?
• Will I incur any charges for a Transfer of Equity where the existing home loan is with Aviva Equity Release?
• My former husband are looking to get a conveyancing solicitor lined up for a new mortgage with Aviva Equity Release. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. How necessary is it to have a conveyancing solicitor local to us?
• I purchased a house with my brother in 2010 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Aviva Equity Release mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Information that may be required from your conveyancing solicitor could ask about your Aviva Equity Release Transfer of Equity

Caveats to be read in in addition to the above Aviva Equity Release transfer of equity Info :

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 Aviva Equity Release 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 require 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 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 Aviva Equity Release 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 Aviva Equity Release 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 time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Aviva Equity Release 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 Aviva Equity Release 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 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.