Frequently asked questions relating to Aviva Equity Release transfer of equity
- What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Aviva Equity Release mortgage account?
- I am in the process of mortgaging my property in Winchelsea
does my lawyer have to be on the Aviva Equity Release Solicitor panel. The conveyancing also involves a transfer of equity.
- I recently bought a apartment without my partner's name on the ownership paperwork. My conveyancer advised it is because she was not in the mortgage with Aviva Equity Release. Is it possible for me to put her name on the deeds?
- My father died seven months ago leaving a unencumbered semi to me and my brother 50:50. He has always lived in the house, there was a condition in the will specifying that the housecould not be sold for 2 years following her passing so he could continue to live there for a prescribed period. He now says he would like 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 traditional way to purchase my half from me?
- My existing home loan is with Aviva Equity Release. Can I transfer equity to someone under 18 years old?
- As things stand I have a joint Aviva Equity Release mortgage with my cousin and am investigating the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to buy a place with my fiance. The outstanding mortgage is approx 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- Have recently separated from my partner of thirty years. I'm now back with my parents again and she wishes to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after paying off the Aviva Equity Release home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being taken advantage of
Examples of questions in a conveyancing solicitor questionnaire relating to Aviva Equity Release Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide the details of anyone who jointly owns the premises with you?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Aviva Equity Release to the proposed transfer of equity?
General Advice to read in supporting the above Aviva Equity Release 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 Aviva Equity Release conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Aviva Equity Release.
Preparing the Transfer of Equity with a Aviva Equity Release Mortgage
When it comes to preparing the the Land Registry documents your lawyer 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 conveyancer 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.