Common questions relating to Fleet Mortgages transfer of equity

• My Fleet Mortgages home loan is in joint names with ex, he is agreeable to come off the mortgage and let me have the property. Fleet Mortgages have consented to the transfer of equity to me solely. Do Fleet Mortgages contact my boss to check my salary?
• Our mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Fleet Mortgages - won’t it be better to just instruct them?
• I plan to remortgage my home in Miles Platting moving from Lloyds TSB to Fleet Mortgages. The maisonette is jointly owned but wish for it to be in my name only when I switch. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer fees.
• What if my application doesn't meet Fleet Mortgages lending criteria for a transfer of equity?
• When it comes to transfer of equity conveyancing involving refinance with Fleet Mortgages should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Given that we have been three years apart I have made the decision to relinquish up my interest in the house to my husband who is re-mortgaging with Fleet Mortgages. Could this transfer of equity be completed in one month?
• I am completing a Fleet Mortgages transfer of equity request and have come to the section regarding defaults etc. There are some debts that I have been reducing for a number of years, I understand that they no longer remain my credit rating. Do I need to set these out?

Sample of information requested in a conveyancing solicitor questionnaire relating to Fleet Mortgages Transfer of Equity

General Advice to read 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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 pursuant to 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 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 market value of the property at the time of completion of the transfer of equity transaction.

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 lawyer 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 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.