Frequently asked questions relating to GE Money transfer of equity
- My mother passed away last March leaving a unencumbered bungalow to me and my brother 50:50. Having continues to reside at the property, there was a clause in her will specifying that the propertycould not be sold for three years following her passing so he could continue to live there for a while. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to acquire my equity?
- My former husband are planning to get a conveyancing solicitor lined up for a remortgage with GE Money. Transfer of Equity conveyancing is also neededI have used the different comparison based tools and the results are from all over England and Wales. Do we need to instruct a conveyancer local to us?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- I am completing a GE Money transfer of equity request and have arrived at the section that asks about defaults etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit rating. Am I obliged to disclose these?
- I bought a house with my cousin five.seven years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the GE Money mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I intend to remortgage my home in Dunnington
switching from Chelsea BS to GE Money. The home is currently in joint names but intend for it to be in my name only as and when I switch. My former partner is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
- Can you tell me how to have someone removed from the deeds to a property where the mortgage is with GE Money
Examples of information requested in a conveyancer form concerning a GE Money Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in in addition to the above GE Money transfer of equity Questions and Answers :
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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 conveyancing solicitor 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 valuation of the property at the conclusion 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 conveyancing solicitor 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 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.
