Sample questions relating to Capital Home Loans transfer of equity

• My fiance and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If Capital Home Loans are happy with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• My Capital Home Loans home loan we jointly entered into with ex, he has agreed to come off the deeds and put the house in my name alone. Capital Home Loans have consented to the transfer of equity to my individual name. Will Capital Home Loans contact my employer to verify my salary?
• Me and my partner co-own a flat in Romsey . Home loan is with Capital Home Loans. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be simple?
• I got my Decree Absolute three years ago. Foolishly I never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Capital Home Loans is willing to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
• I am in the process of removing a name from a joint mortgage and the Capital Home Loans need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Wakefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Capital Home Loans conveyancing panel.
• I am are looking to find an affordable conveyancing lawyer to assist in a transfer of equity and refinance with Capital Home Loans. I want to avoid being ripped off but with various conveyancing firms who do transfer of equity conveyancing to choose from...how do I know which to select?
• Is it possible to apply to request a further advance from Capital Home Loans as part of a Transfer of Equity?

Questions that your conveyancer may ask about your Capital Home Loans Transfer of Equity

Caveats to be read in supplemental the above Capital Home Loans 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 Capital Home Loans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 cases, 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 valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Capital Home Loans 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 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 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 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.