Top seven questions relating to Bluestone Mortgages transfer of equity
- I intend to refinance my home in Miles Platting
switching from Leeds Building Society to Bluestone Mortgages. The apartment is currently in joint names but intend for it to be in my sole name once I switch. My husband is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
- Our mortgage broker has recommended their lawyer for the Transfer of Equity plus remortgage with Bluestone Mortgages - Is it not simpler better to just use them?
- Is it possible to apply to request more money from Bluestone Mortgages as part of a Transfer of Equity?
- Having been four years separated I have decided to give up my share of the property to my husband who is re-mortgaging with Bluestone Mortgages. Could this transfer of equity be completed inside four weeks?
- I am planning on removing a name from a joint mortgage and the Bluestone Mortgages need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Friern Barnet
conveyancing solicitor to deal with the transfer of equity? They need to be on the Bluestone Mortgages conveyancing panel.
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Bluestone Mortgages - and have been quoted Four Hundred pounds excluding VAT by Bluestone Mortgages's approved conveyancing solicitor, Have I been over quoted?
- My mum died half a year ago leaving a loan-free house to me and my half brother in equal shared. He has always lived in the house, there was a provision in her will saying the propertycould not be sold for three years following her passing so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to acquire my equity?
Information that may be required from your conveyancing solicitor could ask regarding your Bluestone Mortgages Transfer of Equity
Please give the details of anyone to be added to the property title?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please clarify where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in supplemental the above Bluestone Mortgages transfer of equity information :
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, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 finalisation 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 conveyancer 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.