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Generation Home

Sample questions relating to Generation Home transfer of equity

  • I am completing a Generation Home transfer of equity request and have come to the part that asks about defaults etc. I do some debts that I have been paying off for a number of years, I understand that they have long since disappeared from my credit records. Must I declare these?
  • Can I apply to borrow more money from Generation Home as part of a Transfer of Equity?
  • I intend to remortgage my home in Friern Barnet switching from Accord to Generation Home. The maisonette is currently in joint names but I would like it to be in my name only when I remortgage. My former partner is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Generation Home mortgage account?
  • My existing home loan is with Generation Home. Can I transfer equity to someone under 18 years old?
  • My wife and myself equally own a investment property. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name with a view to reduce our tax on rental income. If Generation Home are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • Have recently separated from my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the property and buy me out. What percentage do I get. Is it 50% of the equity after discharging the Generation Home home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to

Examples of information requested in a conveyancer questionnaire concerning a Generation Home Transfer of Equity

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Is it the case that 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..

Can you provide the details of anyone who jointly owns the premises with you?

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please inform us where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Caveats to be read in in addition to the above Generation Home 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 Generation Home conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be 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 pursuant to 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 conveyancing solicitor will check with Generation Home 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 Generation Home 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.
If you do not keep up the payments on your mortgage with Generation Home your property may be repossessed.

Preparing the Transfer of Equity with a Generation Home 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 Generation Home 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 should not be regarded as 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 Generation Home transfer of equity