Top seven questions relating to Magellan Homeloans transfer of equity

• My ex are seeking to get a conveyancing solicitor lined up for a remortgage with Magellan Homeloans. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over UK. Is it important to instruct a lawyer local to us?
• I intend to refinance my home in Rye switching from Godiva Mortgages to Magellan Homeloans. The home is currently in joint names but I would like it to be in my sole name as and when I remortgage. My husband has agreed to this and is willing to sign a form but neither of us want to get a second lawyer involved.
• My Magellan Homeloans home loan is in joint names with ex, he is agreeable to come off the mortgage and put the house in my name alone. Magellan Homeloans will permit the transfer of equity to my individual name. Do Magellan Homeloans write my company to confirm my salary?
• What if my application doesn't meet Magellan Homeloans lending criteria for a transfer of equity?
• What are my options where I am dissatisfied with the conveyancer who conducted my transfer of equity conveyancing?
• I am transferring my equity in flat in Hendon to the other co-owners husband, they are sticking with Magellan Homeloans as the the existing lender. We are debating as to who should cover the charges for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
• Law month I separated from my wife of 18 years. I'm now living with my mum and dad and she wants to remain in the flat and pay me off. What portion do I get. Is it 50% of the equity after redeeming the Magellan Homeloans home loan? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to

Sample of questions in a lawyer form concerning a Magellan Homeloans Transfer of Equity

Important warnings to consider in further to the above Magellan Homeloans transfer of equity Questions and Answers :

Tax and Legal

There may be various 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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation 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 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 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Magellan Homeloans Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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. 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.