Top seven questions relating to Foundation Home loans transfer of equity
- Me and a friend got a joint mortgage with Foundation Home loans on a flat a couple of years ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what are the next steps? Is there likely to be any problem with Foundation Home loans with him being on the hook for the total mortgage as opposed to only half of it?
- I already have a mortgage with Foundation Home loans and am retaining my existing mortgaging but wish to have it in my name only so my former husband won't be on it any longer. How long can it take for the application to be processed?
- My mother passed away seven months ago leaving a unencumbered semi to me and my brother equally. Having continues to reside at the property, there was a clause in her will saying the propertycould not be sold for 24 months after her passing so he could continue to live there for a prescribed period. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my equity?
- Is there such a thing a transfer of equity stamp duty calculator?
- I am selling my share of a flat in Woodside to the other co-owners fiance, they are sticking with Foundation Home loans being the the existing lender. We are in heated discussion as to who must pay the charges for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
- My Foundation Home loans home loan is in joint names with ex, who is agreeable to come off the deeds and put the house in my name alone. Foundation Home loans have consented to the transfer of equity to me solely. Do Foundation Home loans get in touch with my company to confirm my salary?
- Can you tell me how to have a person removed from the title documents to a property if the home loan is with Foundation Home loans
Examples of questions in a conveyancing solicitor form concerning a Foundation Home loans Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide a copy of your National Insurance Number?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
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)?
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Important warnings to consider 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 properties
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 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 time of completion of the transfer of equity conveyancing.
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 conveyancer 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.