Frequently asked questions relating to Capital Home Loans transfer of equity
- I am selling my share of a house in Birmingham to my co-owners fiance, they are sticking with Capital Home Loans as the the existing lender. We are in heated discussion as to who should cover the charges for the transfer of equity. Is this normally shared or is one of us liable for the legal bill?
- Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and at the same time refinancing with Capital Home Loans
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Capital Home Loans?
- I am in the process of removing a name from a joint mortgage and the Capital Home Loans require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Timperley
conveyancer to deal with the transfer of equity? They need to be on the Capital Home Loans conveyancing panel.
- My current home loan is with Capital Home Loans. Can I transfer equity to someone under 18 years old?
- I am are seeking to find a dependable conveyancing lawyer to help me sell in a transfer of equity and refinance with Capital Home Loans. I I am concerned about being overcharged but with plenty conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
- My financial adviser has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Capital Home Loans - won’t it be better to just use them?
Questions that your lawyer is likely to ask about your Capital Home Loans Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Have you approached Capital Home Loans to obtain consent to the Transfer of Equity
Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
Please provide the details of anyone to be added to the property title?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Important warnings to consider in supplemental the above Capital Home Loans transfer of equity Questions and Answers :
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 properties
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 lawyer 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 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 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 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 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.