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ITL Mortgages

Recently asked questions relating to ITL Mortgages transfer of equity

  • My brother and I got a joint mortgage with ITL Mortgages on a apartment a couple of years ago. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential issue with ITL Mortgages with him being solely liable for the total loan rather than only part of it?
  • I plan to remortgage my home in Romsey changing from Chelsea BS to ITL Mortgages. The apartment is jointly owned but propose for it to be in my sole name as and when I switch. My husband is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
  • I currently have a joint ITL Mortgages mortgage with my cousin and am investigating the feasibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a place with my fiance. The remaining mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty payable?
  • I am am in need of a conveyancing solicitor to handle my transfer of equity. ITL Mortgages have been approached for a remortgage. I considered asking my mortgage broker. I understand he will likely get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic flawed?
  • I am filling out a ITL Mortgages transfer of equity request and have arrived at the section concerning defaults etc. I do some debts that I have been paying off for a number of years, I understand that they have long since disappeared from my credit records. Am I obliged to disclose these?
  • I am in the process of remortgaging my flat in Wakefield does my lawyer have to be on the ITL Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
  • My partner and myself have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name with a view to reduce our tax on the letting income. If ITL Mortgages are content with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.

Examples of information requested in a conveyancer questionnaire concerning a ITL Mortgages Transfer of Equity

Where you 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 state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

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

Has one of the registered owners passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

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

Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what sums

Important warnings to consider in supporting the above ITL Mortgages transfer of equity Questions and Answers :

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 ITL 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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger 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 conveyancer will check with ITL 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 ITL 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 ITL Mortgages your property may be repossessed.

Preparing the Transfer of Equity with a ITL 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 ITL 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.

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 ITL Mortgages transfer of equity