Top seven questions relating to Generation Home transfer of equity
- My friend and I got a joint mortgage with Generation Home on a apartment in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential concerns with Generation Home with him being responsible for the total loan rather than only part of it?
- Two years ago I purchased a apartment without my partner's name on the ownership paperwork. My conveyancer advised it is because she was not in the loan offer with Generation Home. Is it possible for me to put her name on the documents at HM Land Registry?
- My fiance and myself jointly own a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. If Generation Home are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- Law week I separated from my partner of twenty years. I'm now living with my parents again and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it 50% of the equity after discharging the mortgage with Generation Home? I assume proper valuations are required but I would like to be sure that I'm getting I am not being walked over
- Generation Home have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
- My former wife are seeking to get a conveyancer lined up for a new mortgage with Generation Home. Transfer of Equity conveyancing is also necessaryI have used the different comparison based services and the results are from all over the country. How necessary is it to instruct a conveyancer local to us?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Generation Home?
Questions that your conveyancing solicitor could ask in relation to your Generation Home Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please provide a copy of your National Insurance Number?
Please give the details of anyone to be added to the property title?
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Generation Home to seek consent to the Transfer of Equity
General Advice to 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 premises
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 restrictions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 market value of the property at the conclusion of the transfer of equity transaction.
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 conveyancer 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 lawyer 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.