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GE Money

Recently asked questions relating to GE Money transfer of equity

  • I plan to remortgage my flat in Rye changing from Lloyds TSB to GE Money. The apartment is currently in joint names but propose for it to be in my name only when I switch. My wife is OK with this and is willing to transfer equity but neither of us want to incur conveyancer charges.
  • Is it possible to transfer the equity held in my property with my GE Money mortgage?
  • My current mortgage is with GE Money. Can I transfer equity to someone less than eighteen years old?
  • I already have a mortgage with GE Money and am retaining my existing mortgaging but wish to have have the equity transferred to my name alone so my former husband will be removed from the mortgage. How long can it take for the forms to be processed?
  • As things stand I have a joint GE Money mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
  • What if my application doesn't meet GE Money lending criteria for a transfer of equity?
  • Our financial adviser has recommended their lawyer for the Transfer of Equity plus remortgage with GE Money - Surely it’s better to just instruct them?

Questions that your lawyer is likely to ask regarding your GE Money Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Has one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Please give the details of anyone who jointly owns the property with you?

Who will be responsible for the costs of the Transfer of Equity?

Please provide the details of anyone to be extracted from the title deeds?

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?

Important warnings to consider in further to the above GE Money transfer of equity Advice :

Tax and Legal

There are numerous potential 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, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 pursuant to 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with GE Money your property may be repossessed.

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.

Information contained within 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 GE Money transfer of equity