Foundation Home loans transfer of equity: q and a’s

• My fiance and I have equal shares in a investment property. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name to mitigate tax on the letting income. If Foundation Home loans are fine with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
• Can I apply to request a further advance from Foundation Home loans as part of a Transfer of Equity?
• My former husband are looking to get a lawyer lined up for a refinance with Foundation Home loans. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over the country. Do we need to have a lawyer local to us?
• What are my options where I am unhappy with the conveyancer who handled our transfer of equity transaction?
• Am I best advised stop my mortgage payments with Foundation Home loans once a date for my remortgage and transfer of equity has been set?
• I acquired a house with my brother in 2008 Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Foundation Home loans mortgage. There is a meaningful difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
• What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Foundation Home loans - and have been quoted £350 including VAT by Foundation Home loans's appointed lawyer, Is this is a good price or not?

Examples of questions in a lawyer questionnaire concerning a Foundation Home loans Transfer of Equity

Important warnings to consider in supplemental the above Foundation Home loans transfer of equity Advice :

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 Foundation Home loans 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 require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 lawyer will check with Foundation Home loans 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 Foundation Home loans 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Foundation Home loans 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 Foundation Home loans 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 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.