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Aviva Equity Release

Common questions relating to Aviva Equity Release transfer of equity

  • As things stand I have a joint Aviva Equity Release mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy a place with my partner. The outstanding mortgage is about 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
  • My ex-wife and I are in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Aviva Equity Release. I really don't want to get ripped off but with many conveyancing practices who do transfer of equity conveyancing to pick from...who do I opt for?
  • What is the process for adding or subtracting names (transfer of equity) to or from my Aviva Equity Release mortgage account?
  • I am planning on removing a name from a joint mortgage and the Aviva Equity Release need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Wakefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Aviva Equity Release conveyancing panel.
  • Me and my partner jointly own a house in Romsey . Mortgage is with Aviva Equity Release. I want to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Aviva Equity Release?
  • I already have a mortgage with Aviva Equity Release and am retaining my current mortgaging but seeking to have it in my name alone so my ex will no longer be on the mortgage. How long can it take for the application to be processed?

Information that may be required from your conveyancing solicitor is likely to ask regarding your Aviva Equity Release Transfer of Equity

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

If 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?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

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

Please give the details of anyone who jointly owns the property with you?

Please list all persons who occupy the property, their respective ages and relationships to you.

General Advice to read in in addition to the above Aviva Equity Release transfer of equity information :

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 titles

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 freeholder. If such conditions are not complied with you may be in violation 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 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
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 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.


Frequently asked questions relating to Aviva Equity Release transfer of equity