Top seven questions relating to Magellan Homeloans transfer of equity
- I am trying to find a conveyancing solicitor to handle my transfer of equity. Magellan Homeloans are dealing with the remortgage. I thought of asking my mortgage broker. I am lead to believe he will likely get a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- My mother died seven months ago leaving a loan-free house to me and my step brother 50:50. Having continues to reside at the premises, there was a provision in the will specifying that the housecould not be sold for three years following her death so he could continue to live there for a specified time frame. He now wants to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to purchase my equity?
- I currently have a joint Magellan Homeloans mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to buy a property with my fiance. The remaining mortgage is about 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?
- My former wife are planning to get a conveyancer lined up for a remortgage with Magellan Homeloans. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over the country. Is it important to have a conveyancing solicitor local to us?
- I am completing a Magellan Homeloans transfer of equity form and have arrived at the questions concerning debts etc. There are some debts that I have been reducing for a number of years, in fact they no longer remain my credit rating. Must I set these out?
- Me and a friend got a joint mortgage with Magellan Homeloans on a apartment a couple of years ago. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any concerns with Magellan Homeloans with him being solely liable for the total mortgage as opposed to only part of it?
- My decree absolute has gone through as is the consent order. Now I have to address the transfer of equity at the HMLR and the Magellan Homeloans home loan. I have called Magellan Homeloans for the transfer of equity application. What are my next steps?
Information that may be required from your conveyancer could ask in relation to your Magellan Homeloans Transfer of Equity
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?
Has consent been obtained from Magellan Homeloans to the proposed transfer of equity?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Can you provide the details of anyone who jointly owns the property with you?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please give the name(s) and addresse(s) of anyone to be added to the property title?
General Advice to read in supporting 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of 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.
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 varies based on the market value of the property at finalisation 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 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.