Frequently asked questions relating to Magellan Homeloans transfer of equity
- Is there such a thing a transfer of equity stamp duty calculator?
- My dad died half a year ago leaving a mortgage-free semi to me and my step brother equally. He has always lived in the premises, there was a condition in the will saying the premisescould not be sold for 2 years following her death so he could remain there for a specified time frame. He now wishes to remain in the property beyond the prescribed 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 conventional way to acquire my equity?
- Will I incur any charges for a Transfer of Equity where the existing home loan is with Magellan Homeloans?
- My former husband are planning to get a conveyancing solicitor in place for a refinance with Magellan Homeloans. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over UK. Is it important to appoint a conveyancer local to us?
- I acquired a house with my cousin in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Magellan Homeloans mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- What do I do if I am unhappy with the conveyancer who did my transfer of equity conveyancing?
- Can you tell me how to have a person removed from the title documents to a property where the mortgage is with Magellan Homeloans
Information that may be required from your conveyancing solicitor is likely to ask about your Magellan Homeloans Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you 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?
Have you approached Magellan Homeloans to obtain consent to the Transfer of Equity
Please give the name(s) and addresse(s) of those who jointly own the premises with you?
Please provide the details of anyone to be added to the property title?
General Advice to read in supporting the above Magellan Homeloans 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 Magellan Homeloans conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 conveyancing solicitor 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 market value of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Magellan Homeloans your property may be repossessed.
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 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 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.