Questions and answers: GE Money transfer of equity
- What if my application doesn't meet GE Money lending criteria for a transfer of equity?
- My ex are planning to get a conveyancing solicitor in place for a refinance with GE Money. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with GE Money?
- My mum died early last year leaving a unencumbered house to me and my step brother in equal shared. Having continues to reside at the property, there was a condition in the will saying the propertycould not be sold for 24 months following her passing so he could continue to live there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to buy my equity?
- I am trying to find a lawyer to handle my transfer of equity. GE Money are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he will likely receive a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- My GE Money mortgage is in joint names with ex, he has agreed to be removed and put the house in my name alone. GE Money have consented to the transfer of equity to my individual name. Do GE Money call my employer to confirm my salary?
- I co-own a flat in Miles Platting
, with a GE Money loan with my former partner. He and his new partner are going to acquire my share. We had the go ahead from GE Money to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for GE Money (apparently). In order to save fees can I deal with the Land Registry formalities?
Questions that your conveyancer may ask in relation to your GE Money Transfer of Equity
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
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.
Please give the details of anyone to be added to the property title?
General Advice to read in conjunction with 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 properties
If your property is leasehold, provisions in 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 trigger 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 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 conveyancer 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
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 conveyancer 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 conveyancer 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.