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Masthaven Bank

Sample questions relating to Masthaven Bank transfer of equity

  • What do I do if I am unhappy with the conveyancing solicitor who handled my transfer of equity conveyancing?
  • As things stand I have a joint Masthaven Bank mortgage with my step-brother and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a place with my partner. The remaining mortgage is about 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
  • My fiance and I jointly own a investment property. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name with a view to mitigate tax on the letting income. If Masthaven Bank are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • I am planning on removing a name from a joint mortgage and the Masthaven Bank require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Timperley lawyer to deal with the transfer of equity? They need to be on the Masthaven Bank conveyancing panel.
  • What if my application doesn't meet Masthaven Bank lending criteria for a transfer of equity?
  • I got divorced two years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Masthaven Bank is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
  • How and when do I incur stamp duty payable for the transfer of equity in my house in my name alone which is taking place simultaneously with a switching mortgage via Masthaven Bank?

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

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Has consent been obtained from Masthaven Bank to the proposed transfer of equity?

Can you provide the details of anyone who jointly owns the property with you?

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Caveats to be read in in addition to the above Masthaven Bank 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 Masthaven Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 lawyer 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 is dependent 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 Masthaven Bank.

Preparing the Transfer of Equity with a Masthaven Bank 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 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 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 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