Questions and answers: Magellan Homeloans transfer of equity

• I currently have a joint Magellan Homeloans mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to buy a place with my partner. The remaining mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
• My mum died seven months ago leaving a unencumbered semi to me and my brother in equal shared. Having continues to reside at the premises, there was a clause in the will saying the propertycould 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. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my half from me?
• I recently purchased a property without my fiance’s name on the title. My conveyancer claimed it is due to the fact that she was not in the loan offer with Magellan Homeloans. I'm wondering is there any way that I can add her name on the deeds?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Magellan Homeloans?
• I am disposing of my share of a flat in Hendon to the other co-owners husband, they are reapplying to Magellan Homeloans. We are haggling as to who must pay the costs of the transfer of equity. Should this be split or is one party liable for the costs of?
• My decree absolute has gone through as is the consent order. Now I must deal with the transfer of equity on title deeds and the Magellan Homeloans mortgage. I have contacted Magellan Homeloans for the transfer of equity application. What do I do now?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with Magellan Homeloans?

Information that may be required from your lawyer could ask regarding your Magellan Homeloans Transfer of Equity

Caveats to be read in supplemental the above Magellan Homeloans transfer of equity Info :

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 Magellan Homeloans conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 conveyancer will check with Magellan Homeloans 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 Magellan Homeloans 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Magellan Homeloans 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 Magellan Homeloans 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 contained within this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.