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Capital Home Loans

Examples of recent questions relating to Capital Home Loans transfer of equity

  • My partner and I co-own a house in Crabtree . Home loan is with Capital Home Loans. I wish to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • What if my application doesn't meet Capital Home Loans lending criteria for a transfer of equity?
  • I am thinking of mortgaging my property in Winchelsea does my lawyer need to be on the Capital Home Loans Solicitor panel. The conveyancing also involves a transfer of equity.
  • My wife and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Capital Home Loans are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
  • My friend and I got a joint mortgage with Capital Home Loans on a property a couple of years ago. I am now thinking of purchasing a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any issue with Capital Home Loans with him being responsible for the total mortgage as opposed to only half of it?
  • I am filling out a Capital Home Loans transfer of equity application and have arrived at the questions regarding debts etc. There are some debts that I have been clearing for a number of years, I understand that they no longer remain my credit records. Do I need to set these out?

Examples of questions in a lawyer questionnaire relating to Capital Home Loans Transfer of Equity

If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Have you approached Capital Home Loans to seek consent to the Transfer of Equity

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

We need you to provide the National Insurance Number(s) of all the new owners (required for submission 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?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Important warnings to consider in further to the above Capital Home Loans 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 Capital Home Loans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of 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 conveyancer will check with Capital Home Loans 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 Capital Home Loans 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 time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Capital Home Loans.

Preparing the Transfer of Equity with a Capital Home Loans 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 Capital Home Loans 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to Capital Home Loans transfer of equity