Bluestone Mortgages transfer of equity: q and a’s

• I bought a flat with my cousin in 2010 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Bluestone Mortgages mortgage. There is a significant difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
• I am disposing of my equity in house in Woodside to the other co-owners husband, they are sticking with Bluestone Mortgages being the the existing mortgage company. We are debating as to who must pay the fees for the transfer of equity. Is this normally shared or is one party obliged to cover the fees for?
• Two years ago I purchased a flat without my fiance’s name on the title. My conveyancing solicitor 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 title?
• Have recently split up with my wife of twenty years. I'm now living with my parents again and she wants to stay in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Bluestone Mortgages? I assume proper valuations are required but I really need ensure that I'm getting I am not being walked over
• Is it possible to apply to borrow more money from Bluestone Mortgages as part of a Transfer of Equity?
• Is there such a thing a transfer of equity stamp duty calculator?
• I intend to remortgage my home in Witham switching from Santander to Bluestone Mortgages. The home is currently in joint names but I would like it to be in my name only when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to incur conveyancer charges.

Information that may be required from your conveyancer is likely to ask regarding your Bluestone Mortgages Transfer of Equity

Important warnings to consider in conjunction with the above Bluestone Mortgages transfer of equity Info :

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

If your property is leasehold, the lease may have a requirement for notices to be served and 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 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 is dependent on the market value of the property at the conclusion 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 conveyancer 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 conveyancing solicitor 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.