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Recently asked questions relating to ITL Mortgages transfer of equity

  • What are the average conveyancing charges are for a transfer of equity? I need to transfer equity and refinance - new loan with ITL Mortgages - and have been quoted Four Hundred pounds excluding VAT by ITL Mortgages's appointed conveyancer, Is this a reasonable price?
  • Me and a friend got a joint mortgage with ITL Mortgages on a apartment a couple of years ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Is there likely to be any problem with ITL Mortgages with him being solely liable for the total mortgage as opposed to only half of it?
  • I am filling out a ITL Mortgages transfer of equity request and have come to the questions that asks about debts etc. There are some debts that I have been discharging over a long period, I understand that they have long since disappeared from my credit score. Must I disclose these?
  • My father passed away half a year ago leaving a unencumbered house to me and my half brother in equal shared. He has always lived in the property, there was a clause in the will saying the housecould not be sold for 2 years following her passing so he could reside there for a while. He now wishes to remain in the house beyond the specified period. We have discussed 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 equity?
  • How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my name alone which is taking place simultaneously with a remortgage via ITL Mortgages?
  • When it comes to transfer of equity conveyancing involving refinance with ITL Mortgages should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • Our financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with ITL Mortgages - Is it not simpler advisable to just instruct them?

Questions that your conveyancer may ask about your ITL Mortgages Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

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

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

Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

General Advice to read in conjunction with the above ITL Mortgages transfer of equity Info :

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

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed 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 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 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 market value of the property at finalisation of the transfer of equity transaction.
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 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