Common questions relating to Magellan Homeloans transfer of equity
- Can you tell me how to have someone removed from the title documents to a property if the home loan is with Magellan Homeloans
- What if my application doesn't meet Magellan Homeloans lending criteria for a transfer of equity?
- My father passed away seven months ago leaving a unencumbered bungalow to me and my brother in equal shared. He has always lived in the house, there was a provision in her will specifying that the propertycould not be sold for 2 years after her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my equity?
- After a number of years separated I have decided to relinquish up my interest in the former home to my husband who is re-mortgaging with Magellan Homeloans. Could this transfer of equity be completed within four weeks?
- Have recently separated from my partner of 18 years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion am I entitled to. Is it half of the equity after paying off the Magellan Homeloans home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
- I am am in need of a lawyer to handle my transfer of equity. Magellan Homeloans have been approached for a remortgage. I considered asking my mortgage broker. I understand he will likely receive a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- I am completing a Magellan Homeloans transfer of equity request and have arrived at the part concerning defaults etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit rating. Must I reveal these?
Information that may be required from your conveyancing solicitor is likely to ask regarding your Magellan Homeloans Transfer of Equity
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
Have you approached Magellan Homeloans to seek consent to the Transfer of Equity
Please provide the details of anyone to be
extracted from the property title?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Important warnings to consider in conjunction with the above Magellan Homeloans 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 Magellan Homeloans conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold,
provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to 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 as a result of 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 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 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 Magellan Homeloans.
Preparing the Transfer of Equity with a Magellan Homeloans 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 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 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 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. 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.
