Questions and answers: Bluestone Mortgages transfer of equity
- In 2013 I bought a property without my partner's name on the deeds. My conveyancer said it is due to the fact that she was not in the loan offer with Bluestone Mortgages. I'm wondering is there any way that I can add her name on the title?
- As things stand I have a joint Bluestone Mortgages mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is approx 250k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?
- I purchased a property with my brother in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Bluestone Mortgages mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My partner and I jointly own a flat in Crabtree
. Home loan is with Bluestone Mortgages. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?
- Is it sensible to stop my mortgage payments with Bluestone Mortgages once a date for my remortgage and transfer of equity has been agreed?
- What are the average solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Bluestone Mortgages - and have been quoted Four Hundred pounds including VAT by Bluestone Mortgages's appointed lawyer, Have I been over quoted?
- Our mortgage broker has suggested using their conveyancer for my Transfer of Equity plus remortgage with Bluestone Mortgages - Surely it’s advisable to just instruct them?
Sample of information requested in a conveyancer form concerning a Bluestone Mortgages Transfer of Equity
Where you 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?
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
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 what figure
Is the transfer of equity subject to a court order? If yes please supply a copy
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Have you approached Bluestone Mortgages to seek consent to the Transfer of Equity
Caveats to be read in supplemental the above Bluestone Mortgages transfer of equity information :
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 titles
Should the tenure of your property be 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 restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 varies based 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.
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.