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Top seven questions relating to Kensington Mortgage transfer of equity

  • My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity for the property and the Kensington Mortgage mortgage. I have contacted Kensington Mortgage for the transfer of equity forms. What happens next?
  • My fiance and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name in order reduce our tax on rental income. If Kensington Mortgage are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • What are my options where I am unhappy with the conveyancer who carried out my transfer of equity conveyancing?
  • I jointly own a property in Blaenavon , with a Kensington Mortgage mortgage with my former husband. He and his fiance are going to acquire my share. We had the go ahead from Kensington Mortgage to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Kensington Mortgage (apparently). Is it possible for us to do the Land Registry formalities?
  • My dad died last March leaving a mortgage-free property to me and my brother 50:50. Having continues to reside at the premises, there was a provision in her will saying the propertycould not be sold for 24 months following her passing so he could reside there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to acquire my share?
  • When it comes to transfer of equity conveyancing involving refinance with Kensington Mortgage should I be invoiced VAT 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
  • Having been four years separated I have decided to transfer my share of our former home to my husband who is refinancing with Kensington Mortgage. Could this transfer of equity be completed in 28 days?

Information that may be required from your conveyancing solicitor could ask about your Kensington Mortgage Transfer of Equity

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

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

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?

Please list all persons who occupy the property, their respective ages and relationships to you.

Caveats to be read in in addition to the above Kensington Mortgage 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 Kensington Mortgage 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 freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 conveyancing solicitor 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.
If you do not keep up the payments on your mortgage with Kensington Mortgage your property may be repossessed.

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 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 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.


Frequently asked questions relating to Kensington Mortgage transfer of equity