Questions and answers: GE Money transfer of equity
- My wife and I have equal shares in a investment property. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming GE Money are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- I am planning on removing a name from a joint mortgage and the GE Money need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Witham
conveyancer to deal with the transfer of equity? They need to be on the GE Money conveyancing panel.
- Is it sensible to cancel the direct debit for my mortgage with GE Money as soon as a date for my remortgage and transfer of equity has been set?
- My GE Money home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. GE Money will permit the transfer of equity to me solely. Will GE Money write my employer to confirm my salary?
- I understand we would need at least AP1 and TR1. Is this true?
- Me and a friend got a joint mortgage with GE Money on a apartment about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential issue with GE Money with him being solely liable for the total loan rather than only half of it?
- I co-own a apartment in Rye
, with a GE Money mortgage with my former partner. He and his fiance are going to acquire my share. We had approval from GE Money to remove my name with hers. The transfer of equity needs to be completed by a lawyer for GE Money (apparently). In order to save fees can I deal with the Land Registry change?
Questions that your conveyancer is likely to ask in relation to your GE Money Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please confirm if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
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 confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
General Advice to read in supplemental the above GE Money 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 GE Money conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may require 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 potentially result in the freeholder taking enforcement action against you.
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 GE Money 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 GE Money 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 time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with GE Money.
Preparing the Transfer of Equity with a GE Money 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 GE Money 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 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.