Common questions relating to Kent Reliance transfer of equity
- My dad passed away last May leaving a mortgage-free house to me and my brother equally. Having continues to reside at the house, there was a condition in the will specifying that the housecould not be sold for 24 months after her passing so he could continue to live there for a specified time frame. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to buy my equity?
- I got divorced three years ago. I simply never dealt with the change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Kent Reliance is willing to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
- I am searching for a value for money conveyancing lawyer to assist in a transfer of equity and remortgage with Kent Reliance. I I am concerned about appointing the wrong one and there are many conveyancing solicitors who do transfer of equity conveyancing to choose from...who do I opt for?
- How do I go about adding or subtracting names (transfer of equity) to or from my Kent Reliance mortgage account?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and simultaneously remortgaging with Kent Reliance
- My decree absolute has gone through as is the consent order. Now I must deal with the transfer of equity for the property and the Kent Reliance home loan. I have called Kent Reliance for the transfer of equity application. What happens next?
- I am in the process of removing a name from a joint mortgage and the Kent Reliance require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet
lawyer to deal with the transfer of equity? They need to be on the Kent Reliance conveyancing panel.
Examples of questions in a lawyer questionnaire concerning a Kent Reliance Transfer of Equity
Have you approached Kent Reliance to seek consent to the Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide the details of anyone to be extracted from the property title?
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please provide a copy of your National Insurance Number?
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure
General Advice to read in conjunction with the above Kent Reliance transfer of equity Info :
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, 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 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 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 valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Kent Reliance.
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 conveyancer 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.