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ITL Mortgages

Recently asked questions relating to ITL Mortgages transfer of equity

  • After a number of years apart I have decided to relinquish up my share of the property to my husband who is refinancing with ITL Mortgages. Could this transfer of equity be done in less than four weeks?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with ITL Mortgages?
  • I am hoping to refinance my maisonette in Crabtree switching from Barclays to ITL Mortgages. The maisonette is jointly owned but propose for it to be in my sole name once I remortgage. My former partner has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
  • Is it possible to transfer the equity held in my property with my ITL Mortgages home loan?
  • ITL Mortgages yesterday agreed I can take over the home loan on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds on top?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with ITL Mortgages?
  • I co-own a property in Crabtree , with a ITL Mortgages mortgage with my former partner. He and his fiance are going to buy me out. We had consent from ITL Mortgages to remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for ITL Mortgages (supposedly). Is it possible for us to deal with the Land Registry formalities?

Information that may be required from your conveyancing solicitor may ask about your ITL Mortgages Transfer of Equity

Please give the details of anyone to be added to the property title?

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

Have you approached ITL Mortgages to seek consent to the Transfer of Equity

Would you like us to prepare Declaration of Trust. If so are you happy to incur the further 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

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

General Advice to read in supporting the above ITL Mortgages transfer of equity Advice :

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 ITL Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 the lease. This could potentially result in 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 lawyer 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 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 ITL Mortgages.

Preparing the Transfer of Equity with a ITL 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 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 conveyancing solicitor 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 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 ITL Mortgages transfer of equity