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ITL Mortgages transfer of equity: q and a’s

  • I jointly own a property in Crabtree , with a ITL Mortgages loan with my ex partner. He and his fiance are going to acquire my share. We had the go ahead from ITL Mortgages to remove my name with hers. The transfer of equity has to be completed by a conveyancer for ITL Mortgages (apparently). Is it possible for us to deal with the Land Registry formalities?
  • As things stand I have a joint ITL Mortgages mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is about 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
  • My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to mitigate tax on rental income. Assuming ITL Mortgages are fine with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
  • Me and a friend got a joint mortgage with ITL Mortgages on a house about a year ago. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any concerns with ITL Mortgages with him being solely liable for the total loan rather than only part of it?
  • I bought a property with my cousin in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the ITL Mortgages mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to ITL Mortgages - and have been quoted £250 including VAT by ITL Mortgages's approved conveyancer, Have I been over quoted?
  • I am in the process of removing a name from a joint mortgage and the ITL Mortgages require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Timperley lawyer to deal with the transfer of equity? They need to be on the ITL Mortgages conveyancing panel.

Information that may be required from your conveyancing solicitor could ask in relation to your ITL Mortgages Transfer of Equity

Please provide a copy of your National Insurance Number?

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.

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please inform us if you are making any payment for the Transfer of Equity and to whom and specify the amount?

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

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 premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed 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 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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