Questions and answers: Kensington Mortgage transfer of equity
- I jointly own a flat in Wakefield
, with a Kensington Mortgage loan with my ex partner. He and his fiance are going to acquire my share. We had consent from Kensington Mortgage to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Kensington Mortgage (supposedly). In order to save fees can I do the Land Registry change?
- Can you tell me how to have a person removed off the title documents to a house if the mortgage is with Kensington Mortgage
- My mother passed away half a year ago leaving a unencumbered property to me and my brother in equal shared. He has always lived in the house, there was a clause in her will specifying that the premisescould not be sold for 2 years following her death so he could remain there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to acquire my share?
- I am thinking of refinancing my house in Littleborough
does my lawyer need to be on the Kensington Mortgage Solicitor panel. The conveyancing also involves a transfer of equity.
- Me and my partner jointly own a house in Miles Platting
. Home loan is with Kensington Mortgage. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be straightforward?
- What do I do if I am dissatisfied with the conveyancing solicitor who handled our transfer of equity conveyancing?
- My former wife are planning to get a conveyancer lined up for a remortgage with Kensington Mortgage. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over UK. How necessary is it to appoint a conveyancer local to us?
Examples of questions in a lawyer questionnaire concerning a Kensington Mortgage Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone to be extracted from the property title?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Caveats to be read in further 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 premises
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 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 varies based on the valuation 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 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.
Information contained within 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.