Kensington Mortgage transfer of equity: q and a’s
- Am I best advised stop the direct debit for my mortgage with Kensington Mortgage as soon as a date for my remortgage and transfer of equity has been set?
- I own a apartment in Witham
, with a Kensington Mortgage loan with my former husband. He and his new partner are going to acquire my share. We had consent from Kensington Mortgage to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Kensington Mortgage (apparently). In order to save fees can I deal with the Land Registry formalities?
- Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with Kensington Mortgage?
- Kensington Mortgage have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house as well?
- My dad died early last year leaving a unencumbered bungalow to me and my step brother equally. Having continues to reside at the property, there was a provision in her will saying the premisescould not be sold for three years following her death so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
- I am looking for a lawyer to undertake my transfer of equity. Kensington Mortgage have been approached for a refinancing. I thought of asking my financial adviser. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
- I plan to refinance my home in Wakefield
changing from Leeds Building Society to Kensington Mortgage. The flat is jointly owned but intend for it to be in my sole name as and when I switch. My wife is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
Questions that your conveyancing solicitor may ask about your Kensington Mortgage Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
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?
Please provide the details of anyone to be added to the title deeds?
Please give the name(s) and addresse(s) of those who jointly own the premises with you?
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Kensington Mortgage to obtain consent to the Transfer of Equity
Important warnings to consider in supporting the above Kensington Mortgage transfer of equity Questions and Answers :
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
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 as a result of 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 valuation 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 conveyancing solicitor 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.
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.
