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Recently asked questions relating to ITL Mortgages transfer of equity

  • I am selling my equity in house in Woodside to the other co-owners husband, they are sticking with ITL Mortgages as the the existing mortgage company. We are in heated discussion as to who should pay the fees for the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?
  • I own a house in Blaenavon , with a ITL Mortgages mortgage with my former husband. He and his new partner are going to acquire my share. We had approval from ITL Mortgages to replace my name with hers. The transfer of equity has to be done by a lawyer for ITL Mortgages (apparently). Can we do the Land Registry change?
  • My decree absolute is through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the ITL Mortgages home loan. I have contacted ITL Mortgages for the transfer of equity forms. What do I do now?
  • I bought a property with my brother five.seven years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off 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?
  • ITL Mortgages yesterday agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership of the house in addition?
  • Our financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with ITL Mortgages - Is it not simpler easier to just instruct them?
  • I already have a home loan with ITL Mortgages and am retaining my existing mortgaging but wish to have have the equity transferred to my name only so my ex will be removed from the mortgage. How long does the whole transfer of equity process take?

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

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

Please provide the details of anyone to be added to the title deeds?

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

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?

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

General Advice to read in further to the above ITL Mortgages transfer of equity information :

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 have a requirement for notices to be served and that you have a license to do so from 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 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 valuation of the property at finalisation 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 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