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Godiva Mortgages transfer of equity: q and a’s

  • My father died seven months ago leaving a mortgage-free semi to me and my step brother 50:50. He has always lived in the property, there was a condition in her will saying the propertycould not be sold for 2 years after her passing so he could continue to live there for a specified time frame. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to purchase my half from me?
  • I am are seeking to find a value for money conveyancing solicitor to assist in a transfer of equity and refinance with Godiva Mortgages. I really don't want to get ripped off but with many conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to select?
  • Having been 2 a couple of years apart I have made the decision to relinquish up my share of our former home to my husband who is refinancing with Godiva Mortgages. Can a transfer of equity be completed inside four weeks?
  • My brother and I got a joint mortgage with Godiva Mortgages on a flat a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Is there likely to be any concerns with Godiva Mortgages with him being solely liable for the total loan rather than only part of it?
  • Godiva Mortgages have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house as well?
  • My partner and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If Godiva Mortgages are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
  • What if my application doesn't meet Godiva Mortgages lending criteria for a transfer of equity?

Information that may be required from your conveyancer is likely to ask regarding your Godiva Mortgages 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?

Will there 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 amounts

Is it the case that one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

If are intent on holding 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 let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

Caveats to be read in supporting 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

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 terms are not adhered to you may be in violation 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 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 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 valuation of the property at finalisation 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.

Information contained within this webpage is for general information and only applies to England and Wales. It should not be regarded as 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