Examples of recent questions relating to Godiva Mortgages transfer of equity
- My fiance and I have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to mitigate tax on rental income. If Godiva Mortgages are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
- My friend and I got a joint mortgage with Godiva Mortgages on a flat about a year ago. I am now looking to get a house 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 Godiva Mortgages with him being on the hook for the total mortgage rather than only half of it?
- I am thinking of refinancing my house in Littleborough
does my lawyer have to be on the Godiva Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
- What if my application doesn't meet Godiva Mortgages lending criteria for a transfer of equity?
- I plan to remortgage my maisonette in Romsey
switching from HSBC to Godiva Mortgages. The maisonette is jointly owned but intend for it to be in my sole name once I switch. My former partner has verbally consented to this and is willing to sign a form but neither of us want to incur lawyer charges.
- I am transferring my equity in house in Hendon to the other co-owners husband, they are reapplying to Godiva Mortgages. We are haggling as to who must pay the charges for the transfer of equity. Is this normally shared or is one of us obliged to cover the costs of?
- What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Godiva Mortgages - and have been quoted Three Hundred pounds including VAT by Godiva Mortgages's approved conveyancer, Is this a reasonable price?
Examples of questions in a conveyancing solicitor questionnaire concerning a Godiva Mortgages Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Have you approached Godiva Mortgages to seek consent to the Transfer of Equity
Please provide a copy of your National Insurance Number?
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 the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Caveats to be read in supplemental the above Godiva Mortgages transfer of equity Info :
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 Godiva Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 lawyer will check with Godiva Mortgages 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 Godiva Mortgages 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 Godiva Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Godiva Mortgages Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Godiva Mortgages 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.