Frequently asked questions relating to Fleet Mortgages transfer of equity
- Been reviewing online forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Fleet Mortgages
- At what stage do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening simultaneously with a switching mortgage with Fleet Mortgages?
- My current home loan is with Fleet Mortgages. Can I transfer equity to someone under 18 years old?
- I got divorced in 2010. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Fleet Mortgages is willing to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
- My brother and I got a joint mortgage with Fleet Mortgages on a house a couple of years ago. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. On the basis that we can settle on an amount what are the next steps? Is there likely to be any issue with Fleet Mortgages with him being responsible for the total loan rather than only half of it?
- My mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Fleet Mortgages - Is it not simpler better to just instruct them?
- I am transferring my equity in flat in Hendon to the other co-owners husband, they are reapplying to Fleet Mortgages. We are debating as to who should cover the costs of the transfer of equity. Is this normally split or is one of us obliged to cover the fees for?
Questions that your lawyer is likely to ask in relation to your Fleet Mortgages Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
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?
Has consent been obtained from Fleet Mortgages to the proposed transfer of equity?
Please give the details of anyone to be added to the property title?
General Advice to read in supplemental the above Fleet Mortgages 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 Fleet Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
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 landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 lawyer will check with Fleet Mortgages 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 Fleet Mortgages 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Fleet Mortgages.
Preparing the Transfer of Equity with a Fleet Mortgages 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 Fleet Mortgages 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 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.