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Bluestone Mortgages

Top seven questions relating to Bluestone Mortgages transfer of equity

  • I am considering mortgaging my property in Miles Platting does my lawyer have to be on the Bluestone Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
  • Have recently split up with my partner of 18 years. I'm now back with my mum and dad and she wishes to stay in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the Bluestone Mortgages home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
  • I jointly own a flat in Rye , with a Bluestone Mortgages mortgage with my ex husband. He and his fiance are going to acquire my share. We had consent from Bluestone Mortgages to replace my name with hers. The transfer of equity has to be completed by a lawyer for Bluestone Mortgages (apparently). Can we deal with the Land Registry change?
  • My dad passed away last March leaving a mortgage-free property to me and my half brother equally. Having continues to reside at the premises, there was a condition in the will saying the premisescould not be sold for 24 months after her death so he could reside there for a while. He now wants to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to buy my equity?
  • Bluestone Mortgages have just agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house as well?
  • I currently have a joint Bluestone Mortgages mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my partner. The remaining mortgage is about 300k, and the property value is approx 500k. Is this a transfer of equity? Is land tax due?
  • Is it possible to transfer the equity held in my property with my Bluestone Mortgages mortgage?

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

Can you give the details of anyone who jointly owns the premises with you?

If 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.

Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Who will be responsible for the costs of the Transfer of Equity?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Important warnings to consider in supplemental 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 obtain the consent of the landlord. If such conditions are not complied with 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 lawyer 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 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.

Content on 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