Sample questions relating to Fleet Mortgages transfer of equity

• Me and my partner co-own a flat in Littleborough . Home loan is with Fleet Mortgages. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be simple?
• My wife and I have equal shares in a BTL. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on the letting income. If Fleet Mortgages are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• Can you tell me how to have a person removed from the title documents to a property if the home loan is with Fleet Mortgages
• My mum passed away half a year ago leaving a unencumbered bungalow to me and my brother equally. He has always lived in the premises, there was a condition in her will saying the housecould not be sold for three years following her passing so he could continue to live there for a specified time frame. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Fleet Mortgages?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Fleet Mortgages?
• What can I do where I am unhappy with the conveyancer who carried out my transfer of equity transaction?

Examples of questions in a conveyancing solicitor form concerning a Fleet Mortgages Transfer of Equity

General Advice to read in conjunction with 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 properties

If your property is leasehold, 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 your covenants under 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 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 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 valuation 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 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 conveyancer 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.