Questions and answers: JPMorgan transfer of equity

• My JPMorgan mortgage is in joint names with ex, who has agreed to be removed and let me have the property. JPMorgan have consented to the transfer of equity to my individual name. Will JPMorgan write my boss to verify my salary?
• My current home loan is with JPMorgan. Can I transfer equity to someone who is not yet eighteen years old?
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• I am in the process of removing a name from a joint mortgage and the JPMorgan need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the JPMorgan conveyancing panel.
• When it comes to transfer of equity conveyancing involving refinance with JPMorgan should I be charged value added tax 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
• I am in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with JPMorgan. I want to avoid being ripped off and there are lots of conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
• I am disposing of my share of a apartment in Woodside to my co-owners fiance, they are reapplying to JPMorgan. We are debating as to who must pay the costs of the transfer of equity. Should this be split or is one of us obliged to cover the fees for?

Questions that your lawyer could ask in relation to your JPMorgan Transfer of Equity

Caveats to be read in further to the above JPMorgan 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 JPMorgan conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of 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 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 JPMorgan 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 JPMorgan 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.

Preparing the Transfer of Equity with a JPMorgan 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 JPMorgan 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 contained within 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.