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Questions and answers: Masthaven Bank transfer of equity

  • I already have a mortgage with Masthaven Bank and am retaining my existing mortgaging but wish to have have the equity transferred to my name only so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
  • I bought a property with my cousin in 2008 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Masthaven Bank mortgage. There is a significant difference between the value the Masthaven Bank say and what the property would sell for currently. Can you offer any advice?
  • Is it sensible to stop the direct debit for my mortgage with Masthaven Bank once a date for my remortgage and transfer of equity has been set?
  • I intend to remortgage my maisonette in Wakefield changing from Chelsea BS to Masthaven Bank. The home is jointly owned but intend for it to be in my name only once I remortgage. My wife has verbally consented to this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • I am filling out a Masthaven Bank transfer of equity request and have come to the part that asks about debts etc. There are some debts that I have been discharging since 2008, I understand that they have long since disappeared from my credit records. Am I obliged to set these out?
  • Can I transfer the equity held in my property with my Masthaven Bank home loan?
  • I am planning on removing a name from a joint mortgage and the Masthaven Bank require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting conveyancing solicitor to deal with the transfer of equity? They need to be on the Masthaven Bank conveyancing panel.

Sample of information requested in a conveyancer questionnaire relating to Masthaven Bank Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Please confirm where you are making any payment for the Transfer of Equity and to whom and give details of any such sums?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please provide the name(s) and addresse(s) of those who jointly own the premises with you?

Important warnings to consider in supporting the above Masthaven Bank 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 Masthaven Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 Masthaven Bank 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 Masthaven Bank 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Masthaven Bank your property may be repossessed.

Preparing the Transfer of Equity with a Masthaven Bank 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 Masthaven Bank 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 conveyancing solicitor 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 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.


Frequently asked questions relating to Masthaven Bank transfer of equity