Common questions relating to Kent Reliance transfer of equity

• Is it possible to apply to borrow a further advance from Kent Reliance as part of a Transfer of Equity?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Kent Reliance?
• My father passed away half a year ago leaving a unencumbered semi to me and my step brother in equal shared. Having continues to reside at the premises, there was a condition in her will specifying that the propertycould not be sold for three years after her passing so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to buy my equity?
• As things stand I have a joint Kent Reliance mortgage with my step-brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
• I already have a home loan with Kent Reliance and am keeping my current mortgaging but applying to have have the equity transferred to my name alone so my former partner will no longer be on the deeds. How long does the whole transfer of equity process take?
• I am in the process of removing a name from a joint mortgage and the Kent Reliance require me to use a to carry out the legalities. Can you recommend a reasonably priced Witham to deal with the transfer of equity? They need to be on the Kent Reliance conveyancing panel.
• My divorce is through as is the consent order. Now I must deal with the transfer of equity for the property and the Kent Reliance mortgage. I have contacted Kent Reliance for the transfer of equity forms. What happens next?

Sample of information requested in a conveyancing solicitor questionnaire relating to Kent Reliance Transfer of Equity

Caveats to be read in supplemental the above Kent Reliance transfer of equity information :

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

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 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 conveyancer 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 the conclusion 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 lawyer 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.

Information contained within 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.