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Aviva Equity Release

Top seven questions relating to Aviva Equity Release transfer of equity

  • My partner and I jointly own a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on rental income. If Aviva Equity Release are fine with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
  • Last year bought a apartment without my fiance’s name on the title. My conveyancer said it is due to the fact that she was not in the mortgage with Aviva Equity Release. Is it possible for me to add her name on the documents at HM Land Registry?
  • I bought a house with a friend five.seven years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Aviva Equity Release mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
  • I already have a home loan with Aviva Equity Release and am keeping my current mortgaging but wish to have have the equity transferred to my name alone so my former husband will no longer be on the mortgage. How long can it take for the forms to be processed?
  • Have recently separated from my partner of twenty years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion do I get. Is it half of the equity after discharging the Aviva Equity Release home loan? I assume proper valuations are necessary but I really need to be sure that I'm getting what I am entitled to
  • I am trying to find a conveyancer to handle my transfer of equity. Aviva Equity Release have been approached for a remortgage. I thought of asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic flawed?
  • The mortgage broker has suggested using their lawyer for our Transfer of Equity plus remortgage with Aviva Equity Release - Is it not simpler advisable to just use them?

Information that may be required from your lawyer may ask regarding your Aviva Equity Release Transfer of Equity

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please provide the details of anyone to be added to the property title?

Who will be responsible for the costs of the Transfer of Equity?

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?

Is the transfer of equity subject to a court order? If yes please supply a copy

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

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, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation 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 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 conveyancing solicitor 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 conveyancing.
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 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 lawyer 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 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