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Kensington Mortgage

Common questions relating to Kensington Mortgage transfer of equity

  • The mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Kensington Mortgage - Surely it’s easier to just use them?
  • My former husband are seeking to get a conveyancer lined up for a refinance with Kensington Mortgage. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
  • Last year bought a apartment without my fiance’s name on the ownership paperwork. My conveyancing solicitor advised it is because she is not in the loan offer with Kensington Mortgage. I'm wondering is there any way that I can add her name on the title?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
  • Kensington Mortgage yesterday agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
  • I already have a mortgage with Kensington Mortgage and am maintaining my current mortgaging but applying to have it in my sole name so my former husband will come off the deeds. How long can it take for the application to be processed?
  • Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Kensington Mortgage?

Examples of information requested in a conveyancing solicitor questionnaire relating to Kensington Mortgage Transfer of Equity

Please provide a copy of your National Insurance Number?

Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?

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

Is it the case that one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Important warnings to consider in in addition to the above Kensington Mortgage 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 Kensington Mortgage conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be 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 landlord. If such conditions are not complied with 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 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 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 transaction.
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 lawyer 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 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 Kensington Mortgage transfer of equity