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Frequently asked questions relating to ITL Mortgages transfer of equity

  • What should I be budgeting for when it comes to what 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 excluding VAT by ITL Mortgages's approved conveyancer, Is this is a good price or not?
  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
  • My wife and myself equally own a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. Assuming ITL Mortgages are happy with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
  • ITL Mortgages have just agreed I can take over the mortgage on the flat. I had applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?
  • Have recently separated from my wife of 18 years. I'm now back with my mum and dad and she wants to remain in the apartment and pay me off. What portion do I get. Is it 50% of the equity after redeeming the mortgage with ITL Mortgages? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
  • I already have a home loan with ITL Mortgages and am maintaining my existing mortgaging but seeking to have have the equity transferred to my name only so my ex won't be on it any longer. How long do ITL Mortgages take to process the application?
  • My current home loan is with ITL Mortgages. Can I transfer equity to someone less than eighteen years old?

Information that may be required from your lawyer may ask regarding your ITL Mortgages Transfer of Equity

Please provide a copy of your National Insurance Number?

Please give the details of those who jointly own the property with you?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

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

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

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

Important warnings to consider in in addition to 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 premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions 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 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 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 the time of completion 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 conveyancer 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.

Information provided 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