Top seven questions relating to Kensington Mortgage transfer of equity
- Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and at the same time switching mortgage with Kensington Mortgage
- What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Kensington Mortgage - and have been quoted £250 plus VAT by Kensington Mortgage's approved lawyer, Is this a reasonable price?
- My existing mortgage is with Kensington Mortgage. Can I transfer equity to someone less than 18 years old?
- My fiance and myself jointly own a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name to reduce our tax on rental income. If Kensington Mortgage are fine with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- I am in the process of removing a name from a joint mortgage and the Kensington Mortgage require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Friern Barnet
lawyer to deal with the transfer of equity? They need to be on the Kensington Mortgage conveyancing panel.
- My Kensington Mortgage mortgage we jointly entered into with ex, he has agreed to come off the mortgage and put the house in my name alone. Kensington Mortgage have consented to the transfer of equity to me solely. Do Kensington Mortgage contact my company to check my salary?
- My former husband are seeking to get a conveyancing solicitor lined up for a remortgage with Kensington Mortgage. Transfer of Equity conveyancing is also necessaryI have used the different comparison based services and the results are from all over England and Wales. Is it important to have a conveyancer local to us?
Sample of questions in a conveyancer questionnaire relating to Kensington Mortgage Transfer of Equity
Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please provide the details of anyone who jointly owns the property with you?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
General Advice to read in in addition to the above Kensington Mortgage transfer of equity information :
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 Kensington Mortgage conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation 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 lawyer will check with Kensington Mortgage 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 Kensington Mortgage 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 is dependent 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 Kensington Mortgage.
Preparing the Transfer of Equity with a Kensington Mortgage 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 Kensington Mortgage 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 conveyancer 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.