Questions and answers: Aviva Equity Release transfer of equity
- Me and my former husband and I are are looking to find a value for money conveyancing solicitor to help me sell in a transfer of equity and remortgage with Aviva Equity Release. I want to avoid being ripped off but with many conveyancing practices who do transfer of equity conveyancing out there...who's the best?
- When it comes to transfer of equity conveyancing involving refinance with Aviva Equity Release should I be charged value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- As things stand I have a joint Aviva Equity Release mortgage with my brother and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
- What is the process for adding or removing names (transfer of equity) to or from my Aviva Equity Release mortgage account?
- At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage with Aviva Equity Release?
- Me and a friend got a joint mortgage with Aviva Equity Release on a house about a year ago. I am now thinking of buying a property by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Would there be any potential problem with Aviva Equity Release with him being solely liable for the total mortgage as opposed to only half of it?
- My decree absolute is through as is the consent order. Now I must sort out the transfer of equity at the land registry and the Aviva Equity Release home loan. I have asked Aviva Equity Release for the transfer of equity forms. What do I do now?
Examples of questions in a conveyancing solicitor questionnaire relating to Aviva Equity Release Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Has consent been obtained from Aviva Equity Release to the proposed transfer of equity?
Information to consider in supplemental the above Aviva Equity Release transfer of equity Info :
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 properties
Should the tenure of your property be leasehold, provisions in 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 complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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.
If you do not keep up the payments on your mortgage with Aviva Equity Release your property may be repossessed.
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.
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.