Recently asked questions relating to Kent Reliance transfer of equity
- My mother passed away last March leaving a loan-free house to me and my half brother 50:50. He has always lived in the property, there was a provision in her will saying the premisescould not be sold for 24 months following her passing so he could continue to live there for a while. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to acquire my half from me?
- I got divorced three years ago. For some reason I never got around to transfer ownership from both our names to just in my name. 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 solicitor?
- Is it sensible to cancel my mortgage payments with Kent Reliance as soon as a date for my remortgage and transfer of equity has been set?
- I am planning on removing a name from a joint mortgage and the Kent Reliance require me to use a conveyancing solicitor 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.
- I currently have a joint Kent Reliance mortgage with my brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase a place with my partner. The remaining mortgage is about 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax due?
- Is it possible to transfer the equity held in my property with my Kent Reliance home loan?
- I am refinancing my apartment in Dunnington
does my lawyer have to be on the Kent Reliance Conveyancing panel. The conveyancing also involves a transfer of equity.
Questions that your conveyancer is likely to ask about your Kent Reliance Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Is it the case that one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Important warnings to consider in supplemental the above Kent Reliance transfer of equity Advice :
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, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 is dependent on the valuation of the property at the time of completion 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 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.
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.