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Questions and answers: ITL Mortgages transfer of equity

  • After 2 a couple of years separated I have opted to transfer my share of our house to my husband who is refinancing with ITL Mortgages. Can a transfer of equity be completed inside four weeks?
  • As things stand I have a joint ITL Mortgages mortgage with my step-brother and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase a place with my fiance. The remaining mortgage is about 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
  • I am considering refinancing my house in Wakefield does my lawyer have to be on the ITL Mortgages Conveyancing panel. The conveyancing also involves a transfer of equity.
  • My mother died early last year leaving a unencumbered semi to me and my step brother 50:50. He has always lived in the house, there was a condition in her will saying the premisescould not be sold for 2 years after her passing so he could remain there for a while. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
  • Law month I split up with my wife of twenty years. I'm now back with my mum and dad and she wishes to stay in the apartment and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with ITL Mortgages? I assume proper valuations are required but I would like to be confident that I'm getting I am not being taken advantage of
  • What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to ITL Mortgages - and have been quoted Three Hundred pounds plus VAT by ITL Mortgages's approved conveyancing solicitor, Is this is a good price or not?
  • My ITL Mortgages home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. ITL Mortgages will permit the transfer of equity to me solely. Do ITL Mortgages call my employer to check my salary?

Questions that your conveyancing solicitor is likely to ask about your ITL Mortgages Transfer of Equity

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

Has consent been obtained from ITL Mortgages to the proposed transfer of equity?

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

Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

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

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

Caveats to be read in in addition to the above ITL Mortgages transfer of equity Advice :

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, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 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 finalisation of the transfer of equity transaction.
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 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 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 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