Top seven questions relating to Bluestone Mortgages transfer of equity

• I am am in need of a lawyer to undertake my transfer of equity. Bluestone Mortgages are dealing with the refinancing. I considered asking my financial adviser. I understand he will likely receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• My partner and I jointly own a property in Heathfield . Mortgage is with Bluestone Mortgages. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?
• My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity for the property and the Bluestone Mortgages mortgage. I have asked Bluestone Mortgages for the transfer of equity application. What happens next?
• What if my application doesn't meet Bluestone Mortgages lending criteria for a transfer of equity?
• At what point do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is taking place simultaneously with a switching mortgage via Bluestone Mortgages?
• My former wife are looking to get a lawyer lined up for a new mortgage with Bluestone Mortgages. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over England and Wales. How necessary is it to have a lawyer local to us?
• I already have a mortgage with Bluestone Mortgages and am maintaining my existing mortgaging but applying to have it in my name alone so my former wife will be removed from the mortgage. How long do Bluestone Mortgages take to deal with the application?

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

Caveats to be read in in addition to 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 landlord. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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 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.