Aviva Equity Release transfer of equity: q and a’s

• I am answering a Aviva Equity Release transfer of equity application and have come to the part regarding defaults etc. There are some debts that I have been clearing over a long period, I understand that they no longer remain my credit rating. Must I reveal these?
• 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 conveyancing. Can you recommend a reasonably priced Ampthill conveyancing solicitor to deal with the transfer of equity? They need to be on the Aviva Equity Release conveyancing panel.
• My partner and I co-own a house in Romsey . Mortgage is with Aviva Equity Release. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be simple?
• I am in the process of refinancing my home in Friern Barnet does my lawyer need to be on the Aviva Equity Release Conveyancing panel. The conveyancing also involves a transfer of equity.
• My ex are looking to get a conveyancer in place for a new mortgage with Aviva Equity Release. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over England and Wales. Do we need to instruct a conveyancer local to us?
• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Aviva Equity Release?
• As things stand I have a joint Aviva Equity Release mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a place with my fiance. The remaining mortgage is in the region 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?

Sample of questions in a lawyer form relating to Aviva Equity Release Transfer of Equity

Information to consider in conjunction with the above Aviva Equity Release transfer of equity information :

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 titles

Should the tenure of your property be 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 restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 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 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 valuation of the property at finalisation of the transfer of equity transaction.

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 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.