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Are you in need of a Transfer of Equity with a Foundation Home Loans mortgage? Failing to check that a lawyer is on the Foundation Home Loans list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

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

  • I am in the process of removing a name from a joint mortgage and the Foundation Home loans need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Timperley conveyancer to deal with the transfer of equity? They need to be on the Foundation Home loans conveyancing panel.
  • What is the process for having someone removed from the deeds to a property if the home loan is with Foundation Home loans
  • I own a apartment in Dunnington , with a Foundation Home loans loan with my ex husband. Him and his new partner are going to acquire my share. We had approval from Foundation Home loans to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for Foundation Home loans (supposedly). In order to save fees can I deal with the Land Registry change?
  • At what point do I cover the costs of stamp duty payable for the transfer of equity in my home in my sole name which is happening simultaneously with a refinancing with Foundation Home loans?
  • I am refinancing my flat in Sedgefield does my lawyer need to be on the Foundation Home loans Conveyancing panel. The conveyancing also involves a transfer of equity.
  • What is the process for adding or subtracting names (transfer of equity) to or from my Foundation Home loans mortgage account?
  • My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name in order mitigate tax on rental income. If Foundation Home loans 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.

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

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Where you 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?

Please provide the details of anyone to be added to the property title?

Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?

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?

General Advice to read in supporting 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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of 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 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Foundation Home loans your property may be repossessed.

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 conveyancing solicitor 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.


Frequently asked questions relating to Foundation Home loans transfer of equity