Common questions relating to Kent Reliance transfer of equity
- I am selling my share of a flat in Woodside to the other co-owners fiance, they are reapplying to Kent Reliance. We are in heated discussion as to who must pay the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the costs of?
- I jointly own a property in Heathfield
, with a Kent Reliance mortgage with my former husband. Him and his new partner are going to buy me out. We had approval from Kent Reliance to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Kent Reliance (supposedly). In order to save fees can I deal with the Land Registry change?
- Is it possible to transfer the equity held in my property with my Kent Reliance home loan?
- Have recently separated from my ex of thirty years. I'm now living with my mum and dad and she wants to stay in the property and buy me out. What portion do I get. Is it half of the equity after paying off the Kent Reliance home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over
- I got my Decree Absolute in 2010. I simply never got around to transfer ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Kent Reliance is content to transfer the full equity in my name (financial checks done). Does she need any legal representation?
- Three years ago I purchased a property without my partner's name on the title. My conveyancing solicitor said it is because she is not in the mortgage with Kent Reliance. Is it possible for me to add her name on the title?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
Sample of information requested in a conveyancing solicitor questionnaire relating to Kent Reliance Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please give the details of anyone to be added to the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please give the details of anyone to be removed from the property title?
Has consent been obtained from Kent Reliance to the proposed transfer of equity?
Information to consider in supporting the above Kent Reliance transfer of equity Info :
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 Kent Reliance 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation 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 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 Kent Reliance 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 Kent Reliance 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Kent Reliance your property may be repossessed.
Preparing the Transfer of Equity with a Kent Reliance 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 Kent Reliance 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 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.