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Investec transfer of equity: q and a’s

  • Me and a friend got a joint mortgage with Investec on a flat in 2013. I am now thinking of buying a flat by myself and my friend would like to buy me out. Once we have agreed a price where do we go? Is there likely to be any issue with Investec with him being responsible for the total loan rather than only half of it?
  • My partner and myself equally own a BTL. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Investec are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • Can I apply to request a further advance from Investec as part of a Transfer of Equity?
  • I already have a mortgage with Investec and am keeping my existing mortgaging but seeking to have have the equity transferred to my name alone so my ex will come off the mortgage. How long can it take for the paperwork to be processed?
  • I am planning on removing a name from a joint mortgage and the Investec require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Dunnington lawyer to deal with the transfer of equity? They need to be on the Investec conveyancing panel.
  • What is the process for adding or subtracting names (transfer of equity) to or from my Investec mortgage account?
  • Me and my former wife and I are searching for a trustworthy conveyancing solicitor to assist in a transfer of equity and remortgage with Investec. I am aware of the chance of getting ripped off and there's various conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?

Questions that your conveyancer could ask in relation to your Investec Transfer of Equity

Please provide the details of those who jointly own the premises with you?

Who will be responsible for the costs of the Transfer of Equity?

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Have you approached Investec to seek consent to the Transfer of Equity

Caveats to be read in conjunction with the above Investec 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 Investec 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation 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 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 Investec 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 Investec 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Investec your property may be repossessed.

Preparing the Transfer of Equity with a Investec 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 Investec 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 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 Investec transfer of equity