Common questions relating to Magellan Homeloans transfer of equity
- As things stand I have a joint Magellan Homeloans mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my partner. The remaining mortgage is in the region 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
- My partner and I jointly own a property in Rye
. Home loan is with Magellan Homeloans. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be straightforward?
- I am filling out a Magellan Homeloans transfer of equity form and have arrived at the questions concerning defaults etc. I do some debts that I have been reducing over a long period, in fact they no longer remain my credit records. Do I need to set these out?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Magellan Homeloans?
- I co-own a property in Winchelsea
, with a Magellan Homeloans loan with my ex husband. He and his fiance are going to acquire my share. We had consent from Magellan Homeloans to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Magellan Homeloans (apparently). Is it possible for us to deal with the Land Registry change?
- My former wife are planning to get a conveyancer in place for a remortgage with Magellan Homeloans. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over UK. Is it important to instruct a lawyer local to us?
- My mother died early last year leaving a loan-free house to me and my step brother equally. Having continues to reside at the house, there was a clause in her will specifying that the premisescould not be sold for three years following her passing so he could reside 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. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to purchase my equity?
Sample of questions in a lawyer form relating to Magellan Homeloans Transfer of Equity
Please provide the details of anyone who jointly owns the property with you?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Where you 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?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide a copy of your National Insurance Number?
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Caveats to be read in in addition to 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, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 as a result of 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 conveyancer 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.