Frequently asked questions relating to Bluestone Mortgages transfer of equity

• I own a house in Friern Barnet , with a Bluestone Mortgages loan with my former husband. He and his fiance are going to acquire my share. We had consent from Bluestone Mortgages to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Bluestone Mortgages (apparently). In order to save fees can I deal with the Land Registry formalities?
• What if my application doesn't meet Bluestone Mortgages lending criteria for a transfer of equity?
• I am planning on removing a name from a joint mortgage and the Bluestone Mortgages need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting conveyancer to deal with the transfer of equity? They need to be on the Bluestone Mortgages conveyancing panel.
• I got divorced four years ago. For some reason I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Bluestone Mortgages is happy to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
• Can you tell me how to have a person removed off the title documents to a property if the mortgage is with Bluestone Mortgages
• How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Bluestone Mortgages - and have been quoted £250 excluding VAT by Bluestone Mortgages's appointed conveyancer, Have I been over quoted?
• My Bluestone Mortgages home loan is in joint names with ex, he has agreed to come off the deeds and let me have the property. Bluestone Mortgages will permit the transfer of equity to me solely. Will Bluestone Mortgages call my boss to check my salary?

Questions that your lawyer may ask in relation to your Bluestone Mortgages Transfer of Equity

General Advice to read in further to the above Bluestone Mortgages 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 Bluestone Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of 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.

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 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 Bluestone Mortgages 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 Bluestone Mortgages 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Bluestone Mortgages 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 Bluestone Mortgages 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.

Content on 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.