Sample questions relating to Capital Home Loans transfer of equity

• My current home loan is with Capital Home Loans. Can I transfer equity to someone under 18 years old?
• I am in the process of removing a name from a joint mortgage and the Capital Home Loans need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Blaenavon conveyancer to deal with the transfer of equity? They need to be on the Capital Home Loans conveyancing panel.
• I am trying to find a conveyancing solicitor to handle my transfer of equity. Capital Home Loans are dealing with the remortgage. I considered asking my mortgage broker. I am lead to believe he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
• What is the process for having a person removed off the title documents to a house where the mortgage is with Capital Home Loans
• Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Capital Home Loans?
• I am disposing of my share of a property 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 must pay the costs of the transfer of equity. Should this be shared or is one party obliged to cover the costs of?
• Me and a friend got a joint mortgage with Capital Home Loans on a house about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Would there be any potential issue with Capital Home Loans with him being solely liable for the total loan rather than only part of it?

Sample of questions in a lawyer form relating to Capital Home Loans Transfer of Equity

Important warnings to consider in conjunction with the above Capital Home Loans transfer of equity Advice :

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 titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 conveyancing.

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.

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.