Frequently asked questions relating to Kent Reliance transfer of equity

• What if my application doesn't meet Kent Reliance lending criteria for a transfer of equity?
• As things stand I have a joint Kent Reliance mortgage with my cousin and am investigating the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is about 300k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
• What do I do if I am dissatisfied with the conveyancer who carried out my transfer of equity conveyancing?
• My former husband are seeking to get a lawyer in place for a new mortgage with Kent Reliance. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over the country. Is it important to have a conveyancer local to us?
• My Kent Reliance home loan is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Kent Reliance will permit the transfer of equity to me solely. Will Kent Reliance call my employer to check my salary?
• Law month I separated from my partner of twenty years. I'm now living with my mum and dad and she wishes to remain in the flat and pay me off. What percentage do I get. Is it 50% of the equity after discharging 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 acquired a flat with my cousin in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Kent Reliance mortgage. There is a meaningful difference between the value the Kent Reliance say and what the property would sell for currently. Can you offer any advice?

Questions that your lawyer may ask in relation to your Kent Reliance Transfer of Equity

Important warnings to consider in in addition to the above Kent Reliance 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 Kent Reliance 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 obtain the consent of the landlord. 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.

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 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 market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Kent Reliance 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 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 conveyancer 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.