Top seven questions relating to Bluestone Mortgages transfer of equity
- Me and a friend got a joint mortgage with Bluestone Mortgages on a flat about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Is there likely to be any concerns with Bluestone Mortgages with him being solely liable for the total mortgage as opposed to only half of it?
- I already have a mortgage with Bluestone Mortgages and am maintaining my existing mortgaging but seeking to have it in my name alone so my former husband will come off the deeds. How long do Bluestone Mortgages take to process the application?
- Me and my former husband and I are are seeking to find a value for money conveyancing solicitor to assist in a transfer of equity and refinance with Bluestone Mortgages. I I am concerned about appointing the wrong one but with plenty conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- Three years ago I purchased a flat without my fiance’s name on the title. My lawyer said it is because she is not in the mortgage with Bluestone Mortgages. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
- At what stage do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is happening at the same time as a switching mortgage via Bluestone Mortgages?
- Bluestone Mortgages yesterday agreed I can take over the home loan on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the house as well?
- As things stand I have a joint Bluestone Mortgages mortgage with my brother and am investigating the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a property with my fiance. The remaining mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
Information that may be required from your lawyer could ask in relation to your Bluestone Mortgages Transfer of Equity
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?
Please provide a copy of your National Insurance Number?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Has consent been obtained from Bluestone Mortgages to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Important warnings to consider in supporting the above Bluestone Mortgages transfer of equity Info :
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 Bluestone Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
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 conveyancing solicitor 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 conveyancer 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 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.