Questions and answers: Fleet Mortgages transfer of equity
- Can you tell me how to have a person removed off the deeds to a house where the home loan is with Fleet Mortgages
- I own a property in Blaenavon
, with a Fleet Mortgages loan with my former husband. Him and his fiance are going to buy me out. We had consent from Fleet Mortgages to replace my name with hers. The transfer of equity has to be done by a lawyer for Fleet Mortgages (supposedly). Is it possible for us to do the Land Registry formalities?
- Been reviewing consumer blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and at the same time remortgaging with Fleet Mortgages
- My divorce has gone through as is the consent order. Now I need to address the transfer of equity on title deeds and the Fleet Mortgages home loan. I have asked Fleet Mortgages for the transfer of equity application. What happens next?
- I am looking for a lawyer to undertake my transfer of equity. Fleet Mortgages have been approached for a remortgage. I considered asking my mortgage broker. I understand he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
- My fiance and I jointly own a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Fleet Mortgages are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- Me and a friend got a joint mortgage with Fleet Mortgages on a apartment a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any issue with Fleet Mortgages with him being on the hook for the total mortgage as opposed to only part of it?
Questions that your conveyancer is likely to ask about your Fleet Mortgages Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please give the details of anyone to be removed from the title deeds?
Has consent been obtained from Fleet Mortgages to the proposed transfer of equity?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
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?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read in supplemental the above Fleet Mortgages 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 Fleet Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. 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 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 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 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 lawyer 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.
Content 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.