Questions and answers: Kent Reliance transfer of equity

• Having been 2 a couple of years apart I have opted to give up my share of the apartment to my husband who is re-mortgaging with Kent Reliance. Can a transfer of equity be done inside four weeks?
• Have recently split up with my wife of 18 years. I'm now living with my mum and dad and she wants to stay in the apartment 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 the best deal
• Kent Reliance have today agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
• I plan to refinance my flat in Rye moving from Virgin Money to Kent Reliance. The apartment is currently in joint names but intend for it to be in my name only as and when I switch. My wife is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.
• My Kent Reliance home loan we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. Kent Reliance have consented to the transfer of equity to me solely. Will Kent Reliance get in touch with my boss to verify my salary?
• I am under the impression we would need at least AP1 and TR1. Is this true?
• Me and a friend got a joint mortgage with Kent Reliance on a apartment about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential issue with Kent Reliance with him being solely liable for the total loan as opposed to only part of it?

Information that may be required from your conveyancer could ask in relation to your Kent Reliance Transfer of Equity

Important warnings to consider in conjunction with the above Kent Reliance transfer of equity Advice :

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, 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 strictly observed 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 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 conveyancing solicitor 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 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 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.

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.