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Godiva Mortgages

Sample questions relating to Godiva Mortgages transfer of equity

  • Me and a friend got a joint mortgage with Godiva Mortgages on a house in 2013. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Once we have agreed an amount where do we go? Is there likely to be any issue with Godiva Mortgages with him being on the hook for the total mortgage as opposed to only part of it?
  • I am am in need of a conveyancer to undertake my transfer of equity. Godiva Mortgages are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
  • Is it possible to transfer the equity held in my property with my Godiva Mortgages mortgage?
  • As things stand I have a joint Godiva Mortgages mortgage with my step-brother and am investigating the option of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a property with my fiance. The outstanding mortgage is approx 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax due?
  • My former husband are looking to get a conveyancer lined up for a remortgage with Godiva Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. Do we need to appoint a conveyancer local to us?
  • In 2012 I bought a house without my fiance’s name on the title documents. My conveyancer claimed it is due to the fact that she is not in the loan offer with Godiva Mortgages. Is it possible for me to put her name on the deeds?
  • What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Godiva Mortgages mortgage account?

Sample of questions in a conveyancer form relating to Godiva Mortgages Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure

Please provide the details of anyone to be removed from the title deeds?

Would you like us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

General Advice to read in in addition to the above Godiva Mortgages transfer of equity information :

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 Godiva Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 valuation of the property at the time of completion 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 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 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 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.


Frequently asked questions relating to Godiva Mortgages transfer of equity