Frequently asked questions relating to Magellan Homeloans transfer of equity

• How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Magellan Homeloans - and have been quoted Four Hundred pounds plus VAT by Magellan Homeloans's approved conveyancer, Have I been over quoted?
• My partner and I jointly own a flat in Sedgefield . Home loan is with Magellan Homeloans. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be simple?
• I purchased a flat with my cousin in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Magellan Homeloans mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I already have a mortgage with Magellan Homeloans and am retaining my current mortgaging but seeking to have it in my sole name so my ex will be removed from the deeds. How long does the whole transfer of equity process take?
• I am considering mortgaging my property in Timperley does my lawyer need to be on the Magellan Homeloans Conveyancing panel. The conveyancing also involves a transfer of equity.
• What is the process for having a person removed from the title documents to a house if the mortgage is with Magellan Homeloans
• My dad died early last year leaving a loan-free house to me and my brother equally. He has always lived in the premises, there was a clause in her will saying the premisescould not be sold for 2 years following her death so he could remain there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to purchase my half from me?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your Magellan Homeloans Transfer of Equity

Important warnings to consider in supplemental 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 properties

If your property is leasehold, 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 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 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 finalisation 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 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.