Questions and answers: Fleet Mortgages transfer of equity
- My Fleet Mortgages home loan is in joint names with ex, he has agreed to be removed and let me have the property. Fleet Mortgages have consented to the transfer of equity to my individual name. Will Fleet Mortgages write my company to check my salary?
- Me and a friend got a joint mortgage with Fleet Mortgages on a flat in 2013. I am now thinking of buying a flat on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Is there likely to be any problem with Fleet Mortgages with him being solely liable for the total mortgage as opposed to only part of it?
- How and when do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is happening at the same time as a refinancing with Fleet Mortgages?
- Have recently split up with my partner of twenty years. I'm now living with my mum and dad and she wants to remain in the flat and buy me out. What portion am I entitled to. Is it half of the equity after redeeming the mortgage with Fleet Mortgages? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
- I am am in need of a conveyancer to handle my transfer of equity. Fleet Mortgages are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- I am under the impression we would need at least AP1 and TR1. Is this true?
- I plan to refinance my flat in Crabtree
switching from Godiva Mortgages to Fleet Mortgages. The maisonette is jointly owned but intend for it to be in my name only once I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
Examples of questions in a conveyancer questionnaire concerning a Fleet Mortgages Transfer of Equity
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide the details of anyone who jointly owns the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Important warnings to consider in in addition to the above Fleet Mortgages transfer of equity Questions and Answers :
Tax and Legal
There may be various 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 landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Fleet Mortgages your property may be repossessed.
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 conveyancer 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.