Frequently asked questions relating to ITL Mortgages transfer of equity
- I am planning on removing a name from a joint mortgage and the ITL Mortgages require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Sedgefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the ITL Mortgages conveyancing panel.
- How do I go about adding or removing names (transfer of equity) to or from my ITL Mortgages mortgage account?
- I am hoping to refinance my maisonette in Wakefield
switching from Godiva Mortgages to ITL Mortgages. The apartment is currently in joint names but wish for it to be in my sole name when I remortgage. My wife has verbally consented to this and is willing to sign a form but neither of us want to incur lawyer charges.
- As things stand I have a joint ITL Mortgages mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
- I am filling out a ITL Mortgages transfer of equity request and have arrived at the part that asks about defaults etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit rating. Am I obliged to set these out?
- What if my application doesn't meet ITL Mortgages lending criteria for a transfer of equity?
- The financial adviser has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with ITL Mortgages - Is it not simpler easier to just instruct them?
Information that may be required from your conveyancer is likely to ask about your ITL Mortgages Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Has consent been obtained from ITL Mortgages to the proposed transfer of equity?
Please provide a copy of your National Insurance Number?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be added to the property title?
Please provide the details of anyone to be extracted from the title deeds?
Caveats to be read in further to 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 titles
If your property is leasehold, provisions in 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 terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 valuation 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 conveyancing solicitor 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.