Top seven questions relating to Fleet Mortgages transfer of equity

• What do I do if I am dissatisfied with the conveyancing solicitor who conducted our transfer of equity conveyancing?
• I am filling out a Fleet Mortgages transfer of equity application and have come to the part concerning debts etc. There are some debts that I have been paying off since 2008, in fact they have long since disappeared from my credit records. Do I need to set these out?
• I understand we would need at least AP1 and Transfer Deed. Is this true?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Fleet Mortgages?
• I currently have a joint Fleet Mortgages mortgage with my step-brother and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is approx 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
• I co-own a apartment in Heathfield , with a Fleet Mortgages mortgage with my former partner. 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 has to be done by a conveyancing solicitor for Fleet Mortgages (apparently). Is it possible for us to deal with the Land Registry change?
• What if my application doesn't meet Fleet Mortgages lending criteria for a transfer of equity?

Examples of questions in a lawyer questionnaire relating to Fleet Mortgages Transfer of Equity

Caveats to be read in conjunction with the above Fleet Mortgages transfer of equity Advice :

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 Fleet Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. 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.

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 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 conclusion of the transfer of equity conveyancing.

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 conveyancing solicitor 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.