Questions and answers: Kent Reliance transfer of equity

• Have recently separated from my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and pay me off. What percentage do I get. Is it half of the equity after redeeming the Kent Reliance home loan? I assume proper valuations are required but I would like ensure that I'm getting I am not being taken advantage of
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• Kent Reliance have just agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
• My former wife are seeking to get a conveyancer in place for a refinance with Kent Reliance. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over England and Wales. Do we need to appoint a lawyer local to us?
• What are the average legal fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Kent Reliance - and have been quoted £250 excluding VAT by Kent Reliance's appointed conveyancing solicitor, Have I been over quoted?
• Is there such a thing a transfer of equity stamp duty calculator?
• My partner and I equally own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name in order mitigate tax on rental income. If Kent Reliance are happy with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.

Sample of questions in a lawyer questionnaire relating to Kent Reliance Transfer of Equity

General Advice to read in supplemental the above Kent Reliance 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 Kent Reliance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.

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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.