Sample questions relating to Foundation Home loans transfer of equity

• I already have a home loan with Foundation Home loans and am maintaining my current mortgaging but applying to have it in my sole name so my former wife won't be on it any longer. How long can it take for the forms to be processed?
• My current home loan is with Foundation Home loans. Can I transfer equity to someone who is not yet 18 years old?
• I purchased a house with a friend in 2008 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Foundation Home loans mortgage. There is a 30k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
• My brother and I got a joint mortgage with Foundation Home loans on a apartment about a year ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any concerns with Foundation Home loans with him being on the hook for the total loan as opposed to only half of it?
• What are my options where I am not happy with the conveyancing solicitor who conducted my transfer of equity transaction?
• Can I apply to request a further advance from Foundation Home loans as part of a Transfer of Equity?
• My ex-partner and I are are looking to find a value for money conveyancing lawyer to assist in a transfer of equity and refinance with Foundation Home loans. I am aware of the chance of getting ripped off but with plenty conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?

Information that may be required from your conveyancer is likely to ask in relation to your Foundation Home loans Transfer of Equity

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

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

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 terms are not adhered to you may be in breach of the lease. This could trigger 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 finalisation 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 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.