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Fleet Mortgages

Frequently asked questions relating to Fleet Mortgages transfer of equity

  • Been reviewing consumer blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously remortgaging with Fleet Mortgages
  • I plan to refinance my maisonette in Witham moving from Yorkshire Building Society to Fleet Mortgages. The flat is currently in joint names but I would like it to be in my sole name as and when I transfer. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
  • Is it possible to transfer the equity held in my property with my Fleet Mortgages mortgage?
  • Is it possible to apply to borrow a further advance from Fleet Mortgages as part of a Transfer of Equity?
  • I got divorced three years ago. I simply never dealt with the change the ownership from both our names to my name alone. 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 (financial checks done). Does my ex need a solicitor?
  • I jointly own a flat in Romsey , with a Fleet Mortgages mortgage with my ex husband. He and his new partner are going to acquire my share. We had consent from Fleet Mortgages to replace my name with hers. The transfer of equity needs to be done by a conveyancer for Fleet Mortgages (apparently). Can we do the Land Registry change?
  • My existing home loan is with Fleet Mortgages. Can I transfer equity to someone less than 18 years old?

Examples of information requested in a conveyancer questionnaire relating to Fleet Mortgages Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

Has consent been obtained from Fleet Mortgages to the proposed transfer of equity?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Can you provide the details of anyone who jointly owns the premises with you?

Please provide the details of anyone to be added to the property title?

Information to consider in supporting the above Fleet Mortgages transfer of equity Info :

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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor 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 varies based on the market value 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 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 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 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.


Frequently asked questions relating to Fleet Mortgages transfer of equity