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Bluestone Mortgages

Bluestone Mortgages transfer of equity example support desk enquires

  • My wife and I have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. If Bluestone Mortgages are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • The financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Bluestone Mortgages - Is it not simpler better to just instruct them?
  • I own a flat in Crabtree , with a Bluestone Mortgages mortgage with my ex husband. He and his fiance are going to buy me out. We had approval from Bluestone Mortgages to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Bluestone Mortgages (apparently). In order to save fees can I deal with the Land Registry formalities?
  • What is the process for adding or removing names (transfer of equity) to or from my Bluestone Mortgages mortgage account?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • Is it possible to apply to request a further advance from Bluestone Mortgages as part of a Transfer of Equity?
  • I already have a mortgage with Bluestone Mortgages and am maintaining my existing mortgaging but seeking to have it in my sole name so my former wife won't be on it any longer. How long do Bluestone Mortgages take to process the application?

Sample of questions in a lawyer questionnaire relating to Bluestone Mortgages Transfer of Equity

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

Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Can you give the details of those who jointly own the premises with you?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Has consent been obtained from Bluestone Mortgages to the proposed transfer of equity?

Is it the case that one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Information to consider in supplemental the above Bluestone Mortgages transfer of equity Questions and Answers :

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 titles

Should the tenure of your property be 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 terms are not adhered to 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 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 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Bluestone Mortgages your property may be repossessed.

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.

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 Bluestone Mortgages transfer of equity