Top seven questions relating to Fleet Mortgages transfer of equity
- My current mortgage is with Fleet Mortgages. Can I transfer equity to someone less than eighteen years old?
- Having been 4 years estranged I have decided to transfer my interest in our property to my husband who is re-mortgaging with Fleet Mortgages. Can a transfer of equity be done in four weeks?
- My fiance and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Fleet Mortgages are content with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- I already have a mortgage with Fleet Mortgages and am keeping my existing mortgaging but applying to have have the equity transferred to my name only so my ex won't be on it any longer. How long can it take for the forms to be processed?
- My brother and I got a joint mortgage with Fleet Mortgages on a flat a couple of years ago. I am now looking to get a property by myself and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Would there be any potential concerns with Fleet Mortgages with him being on the hook for the total loan rather than only half of it?
- Am I best advised cancel my mortgage payments with Fleet Mortgages once a date for my remortgage and transfer of equity has been set?
- I jointly own a property in Winchelsea
, with a Fleet Mortgages mortgage with my ex husband. He and his fiance are going to buy me out. We had consent from Fleet Mortgages to remove my name with hers. The transfer of equity needs to be completed by a lawyer for Fleet Mortgages (apparently). Can we do the Land Registry formalities?
Examples of information requested in a conveyancer form concerning a Fleet Mortgages Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Has consent been obtained from Fleet Mortgages to the proposed transfer of equity?
Please give the details of anyone to be removed from the property title?
Who will be responsible for the costs of the Transfer of Equity?
Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Important warnings to consider in further to the above Fleet Mortgages transfer of equity Info :
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 premises
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 conveyancer 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 finalisation 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 conveyancer 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 conveyancer 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.