Examples of recent questions relating to Gen H transfer of equity

• As things stand I have a joint Gen H mortgage with my cousin and am investigating the possibility of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a property with my fiance. The remaining mortgage is in the region 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax involved?
• I acquired a flat with my brother six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Gen H mortgage. There is a 30k difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
• Me and a friend got a joint mortgage with Gen H on a house a couple of years ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Is there likely to be any problem with Gen H with him being responsible for the total loan rather than only half of it?
• My partner and I co-own a property in Ampthill . Mortgage is with Gen H. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be simple?
• I am filling out a Gen H transfer of equity request and have arrived at the questions that asks about debts etc. There are some debts that I have been clearing since 2007, in fact they no longer remain my credit score. Must I reveal these?
• I intend to remortgage my flat in Blaenavon switching from Skipton to Gen H. The maisonette is jointly owned but propose for it to be in my name only when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
• Gen H yesterday agreed I can take over the mortgage on the flat. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Gen H Transfer of Equity

Important warnings to consider in conjunction with the above Gen H 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 Gen H 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 have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 Gen H 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 Gen H 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Gen H 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 Gen H 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 provided 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.