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Bluestone Mortgages transfer of equity: q and a’s

  • My wife and I equally own a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name in order mitigate tax on rental income. If Bluestone Mortgages are happy with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • I am considering remortgaging my property in Romsey does my lawyer need to be on the Bluestone Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
  • What can I do where I am unhappy with the lawyer who undertook my transfer of equity conveyancing?
  • What if my application doesn't meet Bluestone Mortgages lending criteria for a transfer of equity?
  • The financial adviser has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Bluestone Mortgages - Surely it’s advisable to just use them?
  • Me and a friend got a joint mortgage with Bluestone Mortgages on a property about a year ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any issue with Bluestone Mortgages with him being solely liable for the total loan as opposed to only half of it?
  • My divorce has gone through as is the consent order. Now I need to address the transfer of equity for the property and the Bluestone Mortgages mortgage. I have contacted Bluestone Mortgages for the transfer of equity forms. What are my next steps?

Sample of information requested in a conveyancing solicitor form relating to Bluestone Mortgages Transfer of Equity

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)?

Please provide the details of anyone to be removed from the title deeds?

Have you approached Bluestone Mortgages to seek consent to the Transfer of Equity

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

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

Please give the name(s) and addresse(s) of those who jointly own the property with you?

Information to consider in conjunction with 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 properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 conveyancing solicitor 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 time of completion 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 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.


Frequently asked questions relating to Bluestone Mortgages transfer of equity