Questions and answers: Capital Home Loans transfer of equity
- I already have a mortgage with Capital Home Loans and am keeping my current mortgaging but seeking to have it in my name alone so my ex will come off the deeds. How long can it take for the application to be processed?
- Capital Home Loans have just agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds on top?
- What should I be budgeting for when it comes to what solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Capital Home Loans - and have been quoted Three Hundred pounds including VAT by Capital Home Loans's appointed lawyer, Have I been over quoted?
- I own a flat in Ampthill , with a Capital Home Loans loan with my ex husband. He and his new partner are going to buy me out. We had approval from Capital Home Loans to substitute my name with hers. The transfer of equity has to be done by a lawyer for Capital Home Loans (apparently). In order to save fees can I do the Land Registry formalities?
- My former wife are seeking to get a conveyancing solicitor in place for a remortgage with Capital Home Loans. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over England and Wales. How necessary is it to appoint a lawyer local to us?
- I am selling my equity in apartment in Warwick to my co-owners fiance, they are reapplying to Capital Home Loans. We are haggling as to who should pay the legal bill for the transfer of equity. Should this be split or is one party liable for the costs of?
- How and when do I pay stamp duty due for the transfer of equity in my home in my sole name which is happening at the same time as a remortgage with Capital Home Loans?
Information that may be required from your conveyancing solicitor may ask in relation to your Capital Home Loans Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
If 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?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
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.
Can you provide the details of anyone who jointly owns the property with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Information to consider in supporting the above Capital Home Loans transfer of equity Questions and Answers :
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 properties
If your property is leasehold, provisions in 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 terms are not adhered to you may be in violation of 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 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 varies based 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 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 conveyancer 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.