Common questions relating to Bluestone Mortgages transfer of equity
- Can I transfer the equity held in my property with my Bluestone Mortgages mortgage?
- I plan to remortgage my home in Miles Platting
switching from Halifax to Bluestone Mortgages. The home is currently in joint names but intend for it to be in my sole name when I switch. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer fees.
- My brother and I got a joint mortgage with Bluestone Mortgages on a property about a year ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Would there be any potential concerns with Bluestone Mortgages with him being on the hook for the total mortgage as opposed to only half of it?
- Am I best advised stop my mortgage payments with Bluestone Mortgages once a date for my remortgage and transfer of equity has been set?
- Three years ago I bought a flat without my fiance’s name on the ownership paperwork. My conveyancing solicitor claimed it is because she was not in the loan offer with Bluestone Mortgages. Is it possible for me to put her name on the documents at HM Land Registry?
- My ex are planning to get a conveyancer in place for a remortgage with Bluestone Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over UK. How necessary is it to appoint a conveyancing solicitor local to us?
- My wife and I jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name to reduce our tax on rental income. If Bluestone Mortgages are content with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
Sample of information requested in a conveyancer form relating to Bluestone Mortgages Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Has consent been obtained from Bluestone Mortgages to the proposed transfer of equity?
Information to consider in further to the above Bluestone Mortgages transfer of equity Questions and Answers :
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 have a license to do so from the freeholder. If such conditions are not complied with 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 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 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bluestone Mortgages.
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 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 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.