Frequently asked questions relating to Kensington Mortgage transfer of equity
- I am filling out a Kensington Mortgage transfer of equity form and have come to the questions regarding debts etc. I do some debts that I have been discharging since 2009, in fact they have long since disappeared from my credit score. Am I obliged to reveal these?
- I am in the process of removing a name from a joint mortgage and the Kensington Mortgage need me to use a to carry out the paperwork. Can you recommend a reasonably priced Winchelsea
to deal with the transfer of equity? They need to be on the Kensington Mortgage conveyancing panel.
- How and when do I incur stamp duty payable for the transfer of equity in my property in my sole name which is taking place at the same time as a refinancing with Kensington Mortgage?
- Is it possible to apply to borrow more money from Kensington Mortgage as part of a Transfer of Equity?
- As things stand I have a joint Kensington Mortgage mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
- I intend to refinance my apartment in Witham
moving from Leeds Building Society to Kensington Mortgage. The maisonette is jointly owned but propose for it to be in my sole name when I remortgage. My husband is OK with this and is happy to sign a form but neither of us want to get a second conveyancer involved.
- My brother and I got a joint mortgage with Kensington Mortgage on a property about a year ago. I am now looking to get a house by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential problem with Kensington Mortgage with him being solely liable for the total mortgage rather than only half of it?
Examples of information requested in a conveyancer form concerning a Kensington Mortgage Transfer of Equity
Is it the case that one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Has consent been obtained from Kensington Mortgage to the proposed transfer of equity?
Information to consider in conjunction with 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 properties
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 the lease. This could potentially result in 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
