Common questions relating to Godiva Mortgages transfer of equity
- Last year purchased a flat without my partner's name on the title documents. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Godiva Mortgages. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
- I am disposing of my share of a house in Birmingham to the other co-owners fiance, they are reapplying to Godiva Mortgages. We are haggling as to who should pay the legal bill for the transfer of equity. Should this be split or is one of us obliged to cover the charges for?
- As things stand I have a joint Godiva Mortgages mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a place with my fiance. The remaining mortgage is about 250k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty due?
- Is it possible to transfer the equity held in my property with my Godiva Mortgages home loan?
- What can I do where I am dissatisfied with the conveyancing solicitor who did my transfer of equity conveyancing?
- I purchased a property with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Godiva Mortgages mortgage. There is a significant difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
- I already have a home loan with Godiva Mortgages and am maintaining my existing mortgaging but seeking to have have the equity transferred to my sole name so my former wife won't be on it any longer. How long does the whole transfer of equity process take?
Information that may be required from your conveyancing solicitor could ask regarding your Godiva Mortgages Transfer of Equity
Please provide the details of anyone to be added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in further to the above Godiva Mortgages transfer of equity information :
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 properties
Should the tenure of your property be 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 violation of the lease. This could potentially result in 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Godiva Mortgages.
Preparing the Transfer of Equity with a Godiva Mortgages 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 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 lawyer 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.